UPDATE 1-Canadian Royalties to renegotiate terms of debentures

* Says may cut jobs, sell assets

* Says re-negotiating terms of debentures

* Says will curtail larger scale exploration activity

March 9 (Reuters) - Canadian Royalties Inc (CZZ.TO) said it may not have enough cash to meet interest obligations of its debentures through to 2015 if current market conditions prevail, and that it is looking to renegotiate the terms of its debentures to ease pressure.

The company said it may also look at further job cuts and asset sales, and consider joint ventures or transactional opportunities as options to boost liquidity.

Canadian Royalties said it is currently trying to re-negotiate terms of its 7 percent convertible senior unsecured debentures due on March 31, 2015, some of which may be dilutive to shareholders.

The company also said it is postponing engineering and other test work for its project at nickel copper mine Nunavik Nickel, and curtail larger-scale exploration activities to preserve cash.

In October, the company said it had laid off certain staff functions as planned at all offices and sites to preserve cash, and also sees additional staffing reductions as the Nunavik Nickel project winds down for the winter.

Shares of the company were up nearly 2 percent at 26.5 Canadian cents in morning trade on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Deepak Kannan)