Reuters reported that Canadian Royalties Inc has rejected the unsolicited takeover offer from a JV led by Jilin Jien Nickel Industry Co, saying the offer did not recognize the strategic value of its Nunavik nickel project.

Earlier this month, Canada's Goldbrook Ventures Inc and Jilin Jien Nickel formed Jien Mining Canada Limited, to jointly bid for Canadian Royalties. The companies offered to buy shares of Canadian Royalties at 60 Canadian cents a share for a total cash consideration of about CAD 148.5 million.

Canadian Royalties also said that the offer was highly conditional and Jien had not provided any information about a clause related with approval of the deal from the Chinese government. Takeover of Canadian Royalties could significantly increase Jilin Jien's nickel production, as it would add Canadian Royalties' Nunavik project to its fold. The Northern Quebec based project is expected to produce about 26 million pounds of nickel once in operation.

(Sourced from www.reuters.com)