The Chinese mining company that's attempting to buy Canadian Royalties Inc. and its Nunavik nickel project has extended the deadline for its $192-million takeover offer until Nov. 10.
Jien Canada Mining Ltd. and its affiliates said Wednesday that a majority of Canadian Royalties common shares and debentures were tendered to the offer by the initial deadline but less than the minimum required to meet the conditions of the offer.
Merchant bank Jaguar Financial Corp. has objected to the proposal, saying it's unfair to debt holders who have been asked to accept 80 cents on the dollar for their debentures.
Jaguar announced Tuesday that it had verbal assurances from enough Canadian Royalties security holders to block the transaction.
Jien said Wednesday that 68 per cent of the Canadian Royalties common shares had been tendered by the original deadline – meeting the required two-thirds threshold.
However, the number of debentures submitted fell below the minimum 66.6 per cent required. About 60.25 per cent of the total principal debt outstanding was tendered by the deadline.
Jien is 75 per cent owned by Jilin Jien Nickel Industry Co. of China and 25 per cent by Goldbrook Ventures Inc., a Vancouver-based base metals explorer with operations in Quebec.