Canadian Royalties Closes $137,500,000 Financing



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
    NEWSWIRE SERVICES/

    MONTREAL, March 18 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ) (the
"Company" or "Canadian Royalties") announces the closing of its previously
announced offering of $125 million aggregate principal amount of convertible
senior unsecured debentures due March 31, 2015 (the "Debentures"). BMO Capital
Markets acted as lead underwriter in connection with the offering on behalf of
a syndicate of underwriters which included Raymond James Ltd. and Desjardins
Securities Inc. (the "Underwriters").
    In connection with the offering, Canadian Royalties granted the
Underwriters an option to purchase up to an additional $12,500,000 in
principal amount of Debentures on the same terms and conditions, exercisable
up to 30 days following closing of the offering to cover over-allotments and
for market stabilization purposes. The Underwriters have exercised their
option and a total of $137,500,000 principal amount of Debentures were issued
on closing. Solidarity Fund QFL (the "Fund") and Caisse de depot et placement
du Quebec subscribed respectively to $20,000,000 and $40,000,000 principal
amount of Debentures.
    The funds raised will allow Canadian Royalties to continue the
development of the Nunavik Nickel Project and will be used for general
corporate and administrative purposes.
    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.

    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.

    About the Solidarity Fund QFL

    With net assets of over $7.4 billion as at November 30, 2007, the Fund is
a development capital company that through its RRSP channels the savings of
Quebecers into investments in all sectors of the economy to help create and
maintain jobs and to further Quebec's economic growth. The Fund is a partner,
either members, in 1,696 companies. It currently has more than 575,000
shareholders and has helped, on its own or with other financial partners, to
create, maintain and protect over 122,000 jobs. For more information, visit
www.fondsftq.com.

    About Caisse de depot et placement du Quebec

    The Caisse de depot et placement du Quebec is a financial institution
that manages funds primarily for public and private pension and insurance
plans. As at December 31, 2007, it held $155.4 billion of net assets. One of
the leading institutional fund managers in Canada, the Caisse invests in the
main financial markets as well as in private equity and real estate. For more
information: www.lacaisse.com.

    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 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, (877) 879-1688, faucher@canadianroyalties.com; C. Jens Zinke,
VP Business Development, (877) 879-1688, zinke@canadianroyalties.com

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CANADIAN ROYALTIES INC.

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