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Eagle Plains Shareholders Approve Shareholder
Protection Rights Plan
Cranbrook, B.C.: Eagle Plains Resources
Ltd. (EPL:CDNX) is pleased to announce that shareholders
have approved the Shareholder Protection Rights Plan
Agreement (the "Rights Plan") at the annual
and special shareholders meeting held in Calgary, Alberta
on May 30, 2000. The directors are now authorized to
implement the Rights Plan, at such time and under such
circumstances as the directors, in their sole discretion,
shall determine.
The approval of the Rights Plan is not in response
to management's anticipation of any specific current
acquisition
or transaction, is not intended to prevent a takeover
of the Company or to secure continuance in office
of management or the directors. The purpose of the Rights
Plan is to give adequate time for the shareholders
of
the Company to properly assess the merits of a takeover
bid without undue pressure and to allow competing
bids to emerge. The Rights Plan is further designed
to give
the board of directors time to consider alternatives
thereby allowing shareholders to receive full and
fair value for their common shares. The Rights Plan
may increase
the price to be paid by a potential offeror to obtain
control of the Company and may discourage certain
transactions. The adoption of the Rights Plan does not
detract in
any way from or lessen the duties of the board of
directors to act honestly and in good faith with a view
to the
best interests of the Company and its shareholders
and to act in accordance with such standards when considering
a bid made for the common shares of the Company.
The Rights Plan, when implemented, attaches one right
to each common share now existing and all shares issued
in the future (the "Rights") and the Rights
are not exercisable or independently transferable until
separated from the underlying common share ("Separation").
Separation occurs 10 days after an individual or group
(the "Bidder") acquires or seeks to acquire
20% or more of the voting securities held by the Company
(a "Take Over Bid"). Upon Separation, the
Rights attached to the securities held by the Bidder
are automatically voided while the remaining Rights
are exercisable at a substantial discount. As a result,
the Bidder will be substantially diluted thereby providing
additional time for competing bids to surface and for
the shareholders and board of directors to assess various
options.
On Behalf of the Board of Directors
Tim J. Termuende, P.Geo.
President and CEO
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