Cerro Grande Mining Announces Adoption of Shareholder Rights Plan, Posts Quarterly Results; Fell 9% Wednesday
Cerro Grande Mining Corporation (CEG.TO), which fell 9% Wednesday, announced that the board of directors of the corporation has adopted a shareholder protection rights plan and an Enhanced Quorum By-Law 1B Amendment effective May 9, 2013. Wednesday, the company also reported three months results for its Fiscal Period Ended March 31, 2013. Net income after taxes was a negative US$1.08 million for the three month period ended March 31, 2013, compared to a negative $995,000 a year earlier.
It said the objective of the rights plan and Enhanced Quorum By-Law 1B Amendment is to ensure, to the extent possible, that all shareholders of the Corporation are treated equally and fairly in connection with any initiative to acquire control of the Corporation.
The rights plan is not intended to and will not prevent a take-over of the Corporation. The purpose of the rights plan is to encourage a potential bidder to make a "Permitted Bid", having terms and conditions designed to meet the objectives of the rights plan, or to negotiate the terms of an offer with the board of directors of the Corporation.
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