Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF) announced that it has adopted a shareholders' rights plan designed to provide its shareholders with full and fair value when a possible takeover bid for its common shares takes place.
The Vancouver, British Columbia-based company believes the shareholder rights plan “preserves the fair treatment of shareholders, and is consistent with Canadian corporate practice and institutional investor guidelines.”
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Through this plan, the metal exploration company will ensure that it provides for the orderly presentation of permitted bids to shareholders; adequate time for competing bids to emerge; and allowing shareholders have an equal opportunity to participate in competing bids.
When the bid for control through the acquisition of company shares takes place, the plan would also give shareholders adequate time to properly assess any competing bids; and explore and develop alternatives for maximizing shareholder value.
Silver Range will distribute one right of exercise for every common share outstanding under the shareholder rights plan. The rights issued under the shareholder rights plan will become exercisable when a person, including any related parties, acquires or announces its intention to acquire 20% or more of the company’s outstanding common shares without complying with the permitted bid provisions or without the approval of Silver Range's board of directors, the statement said.
The company said that the adoption of this shareholder rights plan will be submitted for ratification by shareholders at a general meeting to be held by May 19, 2022.
Silver Range is a precious metals prospect generator working in Nevada and Northern Canada. It has assembled a portfolio of 45 properties, of which 16 are currently under option to others. The company is actively seeking other joint venture partners to explore the high-grade precious metals targets in its portfolio.
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