Canadian Royalties debenture holders holding back Jien takeover

Jien Canada Mining, the company attempting to buy Canadian Royalties (CZZ-T, CRYAF-O) and its Nunavik nickel project, has extended its offer to Nov. 10, two weeks past the original deadline set for the $192-milliohn bid.

For the deal to go through, Jien Canada needs 67% of shareholders and 67% of debenture holders to tender.

So far almost 68% of shares have been tendered but only 60% of debentures.

Last week Jaguar Financial got involved with the deal after it was approached by debenture holders upset that they were only getting 80¢ on the dollar for their 7% convertible unsecured debentures due in March 2015. The principal value of the debentures was $137.5 million.

Jaguar, now a debenture holder, announced that it was opposing the deal and was trying to get enough debenture holders to block the deal.

Jien Canada, a partnership between China’s Jilin Jien Nickel Industry Company and Vancouver’s Goldbrook Ventures (GBK-V, GBKVF-O), says the current offer of $192 million is the final offer. The offer was increased from the original August bid of $148.5 million.

Jien also says that Canadian Royalties Chairman and CEO, Glenn Mullan, had agreed to tender his shares. Mullan held nearly 5% of Canadian Royalties.

Mullan refused to tender them until Jien Canada agreed to continue community initiatives and agreements that Canadian Royalties had started with the Inuit community living near the project.