OREANDA-NEWS. Canadian Royalties Inc. (CRI ) and Norilsk Nickel Harjavalta Oy ( Norilsk Nickel ), a wholly owned subsidiary of MMC Norilsk Nickel, announced the signing of several agreements aimed at expediting the development of CRI's Nunavik Nickel Project. The agreements include a sales agreement for nickel concentrates, an immediate C$25 million share subscription, and an option for additional financing at a later date to ensure project completion, reports the Norilsk Nickel press-service.

Sales Agreement for Nickel Concentrates
Following an extensive bidding process, CRI has reached an agreement with Norilsk Nickel to sell nickel concentrates produced from its Nunavik Nickel Project to Norilsk Nickel.  The terms of this agreement are considered by CRI's management to be highly competitive with market rates.

Equity Investment
Under the equity investment, Norilsk Nickel shall subscribe on a private placement basis for an aggregate of 7,246,377 common shares in the equity of CRI at a price of C$3.45 per common share for a total of C$25 million. The purchase price represents a 23% premium over the closing price of CRI's securities on Friday, September 28, 2007. The subscription is subject to the approval of the Toronto Stock Exchange (the TSX ). Under the agreement, CRI may request Norilsk Nickel to provide an additional C$25 million in financing on mutually agreed terms to ensure project completion. Richard Faucher, President and CEO of CRI, stated: "The successful conclusion of these agreements represents a major milestone for CRI. Forming this strategic partnership with Norilsk Nickel reduces several project risks, including risks related to the financing of the project. Another significant part of our considerations in favour of Norilsk Nickel has been access to their technical know-how which will support CRI to capture the tremendous resource potential of the Nunavik Nickel Project."

Antti Aaltonen, Managing Director of Norilsk Nickel Finland Oy said: "We are pleased to enter into this agreement with CRI. It is the culmination of a long period of cooperation and negotiation to bring the development of the Nunavik Nickel Project together with the assets and know-how of the Norilsk Nickel group. We look forward to working with the management of CRI on this exciting and important project.

Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located in northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources. Canadian Royalties currently holds a 100% interest in the Ivakkak deposit, subject to a net smelter royalty (NSR). Additionally, Canadian Royalties has vested in a 70% interest in the Expo-Ungava property (which hosts the Mesamax, Mequillon and Expo deposits), where its interest shall be increased to 80% simultaneously with the creation of the joint venture. Further, Canadian Royalties holds an underlying 2% NSR on the Expo-Ungava Property.