Sandstorm Gold Adopts Shareholder Rights Plan
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VANCOUVER, BRITISH COLUMBIA,--(Marketwire - April 12, 2011) - Sandstorm Gold Ltd. ("Sandstorm" or the "Corporation") (TSX VENTURE:SSL) announces that its board of directors (the "Board") has approved the adoption of a shareholder rights plan agreement (the "Rights Plan"), entered into with Computershare Investor Services Inc., as rights agent, effective April 11, 2011.
The Rights Plan is being adopted to provide adequate time for the Board and the Corporation's shareholders to assess any unsolicited take-over bid (a "Bid") which might be received, to provide the Board with sufficient time to explore and develop alternatives for maximizing shareholder value and to provide the Corporation's shareholders with an equal opportunity to participate in the Bid and protect them from unfair or coercive tactics. The Rights Plan is not being adopted as a result of any pending or suspected unsolicited Bid to acquire control of the Corporation.
The Rights Plan is intended to encourage any Bid to satisfy certain minimum standards designed to promote fairness. If a Bid fails to satisfy these minimum standards, the Rights Plan provides that holders of the Corporation's common shares, other than the bidder, will be able to purchase additional common shares at a substantial discount to the market price.
The Rights Plan has been conditionally approved by the TSX Venture Exchange and is subject to the ratification by the shareholders of the Corporation at its annual and special meeting of shareholders scheduled to be held on May 10, 2011.
A copy of the Rights Plan will be filed under the Corporation's profile on SEDAR at www.sedar.com and made available on Sandstorm's website. |
