MONTREAL, March 31 /CNW Telbec/ - Canadian Royalties Inc. ("Canadian
Royalties" or the "Company") (TSX:CZZ) announces that it has filed today its
financial results for the year ended December 31, 2007.
Financial Results Year Ended December 31, 2007:
During the year the Company's primary focus has been the exploration and
development of the Nunavik Nickel Project (the "Project") as an independent,
stand-alone Nickel, Copper, PGM mining and milling operation. In June of 2007
SNC-Lavalin completed a feasibility study in respect of the Mesamax, Expo and
Ivakkak deposits. The total Project costs were estimated at $465.6 million
including an allowance of 3.5% for inflation.
In order to commence funding the Project's development the Company
complete a $ 75,050,000 public equity issue in July 2007, followed by a non
brokered private placement issue of $25,000,000 in October 2007 with Norilsk
Nickel Harjavalta Oy ("Norilsk"), a strategic partner with whom the Company
entered into an off-take agreement for the sale of its nickel concentrate. In
addition, to further develop the Project, the Company established an equipment
financing facility of $ 15,000,000 with Caterpillar Financial LLC to finance
the acquisition of both mobile and power generating equipment.
The Company engaged Project management personnel, commenced engineering
work and purchased long lead time items such as ball mills, generator sets and
construction housing units. It also completed the construction of an
18-kilometre exploration access road to the Expo Ungava deposit. As of
December 31, 2007 the Company had used $66,800,000 of the net proceeds of the
equity raised in 2007 for development of the Project.
To further finance the Project, the Company has also entered into a
letter of engagement with BMO Capital Markets and Commonwealth Bank of
Australia for the establishment of a $250,000,000 debt facility. Subsequent to
the year end, on March 18, 2008 the Company closed a short form prospectus
offering of debentures for aggregate gross proceeds of $137,500,000.
The Company has filed an Environment Impact Study and applications for
the key permits.
Finally, a re-evaluation of its interest in its Richard (located in
Nunavik, Quebec) and Thompson Nickel Belt South (located in Thompson,
Manitoba) properties, the Company has written-off an aggregate $1,899,372 in
exploration expenses in respect of same.
The Income Statement Highlights for the period ending December 31, 2007
are as follows:
2007 2006 2005
Net loss: ($5,642,104) ($4,820,645) ($1,628,297)
Net loss per share: (0.07) (0.08) (0.03)
Balance Sheet Highlights
December 31, 2007 December 31, 2006
Cash and cash equivalents: 37,007,890 3,524,540
Working Capital (excluding cash
and cash equivalents): 6,317,297 11,267,404
Total Assets: 163,301,199 11,267,404
Long term debt: 7,775,992 124,096
Shareholders Equity: 141,290,241 44,738,398
The Company's audited financial statements for the year ended
December 31, 2007 and Management's Discussion and Analysis thereon are
available for public viewing via the internet at www.sedar.com
About Canadian Royalties and the Nunavik Nickel Project
Canadian Royalties has initiated the development of an independent,
stand-alone nickel-copper mine on its Nunavik Nickel Project, located
20 kilometres south of Xstrata Nickel's Raglan Mine in northern Quebec.
Canadian Royalties is proceeding with permitting applications, as well as
exploration for additional resources.
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 Annual
Information Form for the year ended December 31, 2007 and dated March 31,
2008. 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
Project 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. Accordingly, readers should
not place undue reliance on forward-looking statements.
For further information:
For further information: Canadian Royalties Inc.: Richard R. Faucher,
President & CEO, Toll free: (877) 879-1688,
firstname.lastname@example.org; Gerald R. Price, Chief Financial
Officer, Toll free: (877) 879-1688, email@example.com;