China's Jilin Jien Nickel Industry and Canada's Goldbrook Ventures Inc. raised their cash offer for Canadian Royalties Inc. Friday by about 30 per cent, winning approval from the company.
Shares of nickel mine developer Canadian Royalties soared 34.5 per cent to 78 cents on the Toronto Stock Exchange, just shy of the offer price of 80 cents a share, or $192-million.
Jilin Jien, China's No. 2 nickel miner, is one of several Chinese companies that have been actively buying up foreign resource assets to help slake the country's hunger for metals and fuel.
It already holds stakes in Canadian-listed companies Victory Nickel Inc. and Liberty Mines Inc.
Jien and Goldbrook will also buy all of Canadian Royalties' outstanding debentures. The two companies formed a 75-25 joint venture called Jien Canada earlier this year to pursue Canadian Royalties.
The takeover agreement, which follows an unsuccessful hostile bid launched in August, will give the companies control of the Nunavik nickel project in northern Quebec.
Nunavik was put on hold last year because of financing difficulties, but is expected one day to produce about 26 million pounds of nickel and 39 million pounds of copper.
"This announcement represents the best available alternative for shareholders and the Canadian Royalties board will be recommending that shareholders accept the share offer," the company said in a statement.
The sweetened offer is a steep improvement on the previous bid of 60 cents, and a 38 per cent premium on Canadian Royalties' close of 58 cents Thursday.
Canadian Royalties rejected the original bid, saying it did not recognize the strategic value of its Nunavik nickel project.
Canadian Royalties' stock has risen more than 60 per cent since the initial bid in August.