Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

July 19, 2007 11:11 ET

Canadian Royalties Prices C$75 Million Common Share Offering

MONTREAL, QUEBEC--(Marketwire - July 19, 2007) - NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Canadian Royalties Inc. (TSX:CZZ)(the "Company" or "Canadian Royalties") announces that it has priced an offering of 27.3 million common shares at a price of $2.75 per share, resulting in $75,075,000 in gross proceeds to the Company. The Company has granted the underwriters an over-allotment option, exercisable in full or in part for a period of 30 days from the date of closing of the Offering, to purchase up to a further 15% of the common shares sold pursuant to the offering to cover over-allotments and for market stabilization purposes. BMO Capital Markets acted as lead underwriter in connection with the offering on behalf of a syndicate of dealers including Desjardins Securities Inc., Raymond James Ltd., and Blackmont Capital Inc. The common shares may also be sold on a private placement basis in jurisdictions outside of Canada.

The Company plans to use the net proceeds from the offering to initiate the initial phase of development of the Nunavik Nickel Project (1), to continue exploration, and for other general corporate and administrative purposes. The Company intends to file its final short form prospectus as soon as it receives clearance for filing final materials with the securities regulatory authorities in each of the provinces of Canada. The Company expects to close the sale of the common shares on July 26, 2007, subject to customary closing conditions. For additional information in respect of the offering kindly refer to the Company's news release and preliminary short form prospectus dated July 10, 2007, both of which are available for public viewing via SEDAR at www.sedar.com.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

Ownership of the Nunavik Nickel Project (1)

Canadian Royalties currently holds a 100% interest in the Ivakkak deposit, subject to a net smelter royalty ("NSR", refer to press release dated September 21, 2005) and a 70% interest and a 2% NSR in the Expo-Ungava property (which hosts the Mesamax, Mequillon and Expo deposits).

About Canadian Royalties and the Nunavik Nickel Project(1)

Canadian Royalties is in the process of initiating the development of the Nunavik Nickel Project(1) which is anticipated to be an independent, stand-alone Ni-Cu-PGE mining and milling operation in the general vicinity of Xstrata Nickel's Raglan Mine in Nunavik, Quebec. Canadian Royalties is currently proceeding with permitting applications, as well as with exploration for additional resources.

Forward-looking Statements

This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Company's Amended and Restated Annual Information Form for the year ended December 31, 2006 and dated July 10, 2007. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Nunavik Nickel Proejct(1) is a technical viable and economic operation, that it can be successfully completed by the Company, that the Company will receive the required permits and access to surface rights, and that the Company can access financing, appropriate equipment, and sufficient labor. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof. Accordingly, readers should not place undue reliance on forward-looking statements.

(1) Formerly referred to as the Raglan South Nickel Project (RSNP).

Contact Information

  • Canadian Royalties Inc.
    Richard R. Faucher, President & CEO
    800 René-Lévesque Blvd. West, Suite 1525
    Montreal, Quebec H3B 1X9
    Toll free: 877-879-1688
    faucher@canadianroyalties.com
    or
    Canadian Royalties Inc.
    C. Jens Zinke, VP Business Development
    800 René-Lévesque Blvd. West, Suite 1525
    Montreal, Quebec H3B 1X9
    Toll free: 877-879-1688
    zinke@canadianroyalties.com