Goldbrook Ventures Inc.
TSX VENTURE : GBK

Goldbrook Ventures Inc.

October 30, 2009 09:38 ET

Jien Canada Reiterates That Canadian Royalties Offers Are Full and Final

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2009) - Jilin Jien Nickel Industry Co., Ltd. ("Jilin Jien"), Goldbrook Ventures Inc. ("Goldbrook") (TSX VENTURE:GBK), Jien Canada Mining Ltd., and Jien International Investment Ltd. (collectively "Jien Canada") announced today that based on various discussions with Canadian Royalties Inc. ("Canadian Royalties", TSX: CZZ) security holders, on commentary in the media, and on current trading prices for the Canadian Royalties debentures, Jien Canada believes there may be speculation in the market that it may consider changes to the terms of its offers for the Canadian Royalties shares and debentures, and in particular that Jien Canada may consider an increase in its bid price for the debentures.

Jien Canada reiterates that its offers are full and final, that its offers will not, under any circumstances, be increased in price, extended past November 10th, 2009 (if unsuccessful), or the terms otherwise varied. The Jien Canada offers represent full and fair value for Canadian Royalties and reflect the maximum amount that Jien Canada is prepared to pay for this acquisition. Jien Canada believes its cash offers are an attractive alternative to what would likely be an extended process of restructuring with an uncertain outcome if the minimum tender conditions of 66 2/3% of both the shares and the debentures are not met.

Should the Jien Canada offers be successful, Jien Canada would like to emphasize that it intends to work cooperatively and constructively with all stakeholders towards the expedited development of the Nunavik Nickel Project, with expected benefits to include:

  • Significant capital investment leading to employment and other long term economic benefits for Quebec
  • Jobs, trades training and economic opportunities for Inuit communities in Nunavik
  • Support of local businesses and contractors in Nunavik
  • Economic support and jobs for the municipality of Val d'Or and support of their new initiatives towards attracting mining related industries to Val d'Or
  • Opportunities for mining contractors and other service providers throughout Quebec

"If successful in our offers Jien Canada will act as a good corporate citizen in Quebec committed to working positively over the long term with all communities and stakeholders" commented Mr. Wu Shu, Chief Executive Officer of Jien Canada. "We believe that the near-term re-start and development of the Nunavik Nickel Project will bring many important social and economic benefits to Quebec".

This press release does not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any of the securities of Canadian Royalties. Such an offer can only be made pursuant to an offer to purchase and accompanying offering circular filed with the securities regulatory authorities in Canada.

About Jien Canada

Jien Canada was incorporated under the Federal laws of Canada on August 6, 2009. The voting shares of Jien Canada are owned by Jilin Jien Nickel Industry Co., Ltd. through Jien International Investment Ltd. and Goldbrook, as to 75% and 25%, respectively. Jien Canada has not carried on any business other than business incidental to making the Offers. The head office and the registered and records office of Jien Canada is Suite 1550, 200 Burrard Street, Vancouver, B.C. V6C 3L6.

About Goldbrook

Goldbrook Ventures is engaged in the exploration for Nickel-Copper-Platinum Group Element sulphide deposits – a class of mineral deposit that, due to its poly-metallic nature, has the advantage of protection against individual metal price cycles and has strong long term supply-demand fundamentals. Goldbrook's quest for discovery is focused in the Raglan District of Northern Quebec, a district that hosts Xstrata's Raglan operations, arguably one of the world's most profitable nickel-copper-PGE mines. Goldbrook is the District's single largest holder of mineral rights, with a 100% interest in 891,000 acres.

About Jilin Jien

Jilin Jien Nickel Industry Co., Ltd. is a corporation existing under the laws of China. The head office of Jilin Jien is located at Panshi City, Jilin Province, China.

Jilin Jien is one of China's largest producers of nickel, copper and cobalt sulphates, as well as other nickel products including nickel matte, electrolytic nickel, nickel hydroxide and nickel chloride. With profitable operations spanning exploration, mining, smelting, refining, chemicals and research, Jilin Jien has total assets of RMB3.2 billion, nearly 10,000 employees and its facilities occupy 4.5 million square meters.

Jilin Jien is a publicly-traded company owned and controlled by shareholders. Jilin Jien was the first company in China's nickel industry to list on the A-share market of the Shanghai Stock Exchange under stock code 600432. Jilin Jien is one of the companies comprising the SSE180 index and the CSI300 index. Jilin Jien has a majority shareholder – Jilin Horoc Nonferrous Metal Group, Co Ltd., who owns approximately 57%. Indirectly, the government of China owns less than 20% (indirect interest) of Jilin Jien, as the government has a partial ownership in Jilin Horoc Nonferrous Metal Group. The management and the board of Jilin Jien make all decisions pertaining to their business.

ON BEHALF OF THE GOLDBROOK BOARD:
"David Baker," Chairman and CEO

ON BEHALF OF THE JIEN CANADA MINING BOARD:
"David Baker," Director

Dedicated transaction website at: www.jiencanadamining.com

Cautionary Note Regarding Forward-Looking Statements

Certain of the statements made herein may contain forward-looking statements or information within the meaning of Canadian securities laws and the applicable securities laws of the United States. Such forward looking statements or information include, but are not limited to, statements or information with respect to Jien Canada's intention with respect to the offer to acquire Canadian Royalties; the proposed terms of such offer; the business, operations and financial performance and condition of each of Goldbrook, Jilin Jien, Jien International and Jien Canada.

Forward-looking statements or information are based on a number of estimates and assumptions and are subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking statements or information. Should one or more of these risks and uncertainties materialize, or should underlying estimates and assumptions prove incorrect, actual results may vary materially from those described in forward looking statements or information. Factors related to such risks and uncertainties, and underlying estimates and assumptions include, among others, the following: Jien Canada's assessment of the effect of an offer on Goldbrook, Jilin Jien, Jien International Investment Ltd., Jien Canada and on the shareholders and debentureholders of Canadian Royalties, the timing and prospects for shareholder and debentureholder acceptance of an offer and the implementation thereof; the satisfaction of any conditions to an offer; the ability of Jien Canada to advance development of the Nunavik Nickel project; price volatility of nickel and other metals; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated resources, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; speculative nature of mineral exploration; defective title to mineral claims or property, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. Accordingly, undue reliance should not be placed on forward looking statements or information. We do not expect to update forward-looking statements or information continually as conditions change, except as may be required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Institutional Investor & Media Contact
    Kingsdale Communications Inc.
    Janet Craig, Managing Director
    416-867-2315
    jac@kingsdalecommunications.com
    or
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    Kingsdale Shareholder Services Inc.
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