DNI AMENDS AND REINSTATES SHAREHOLDER RIGHTS PLAN
TORONTO, June 30, 2011 /CNW/ --
DNI METALS INC. (DNI : TSX-Ven)(DG7 : Frankfurt)
TORONTO, June 30, 2011 /CNW/ - DNI Metals Inc. (TSXV:DNI)(DG7:FSE) is pleased to announce that its Board of Directors has resolved to
amend and continue DNI's existing shareholder rights plan (the 'Plan') which is dated and effective as of July 15, 2008, and is due to
expire in the coming months, by approving an amended and restated
shareholder rights plan (the 'Amended and Restated Plan'), subject to regulatory and shareholder approvals. The Amended and
Restated Plan is identical to the Plan, save for minor revisions
necessary to better harmonize it with various regulations enacted since
2008.
The objective of the Amended and Restated Plan is to ensure, to the
extent possible, that all DNI shareholders are treated equally and
fairly in connection with any take-over bid, and to provide sufficient
time for all shareholders to consider any such transaction. The Amended
and Restated Plan also provides DNI's Board of Directors with
additional time to consider any take-over bid and, if applicable, to
explore alternative transactions in order to maximize shareholder
value. The Amended and Restated Plan is not designed to prevent
take-over bids that treat DNI shareholders fairly. DNI is not aware of
any specific take-over bid for DNI that has been made or is
contemplated.
Under the Amended and Restated Plan, shareholders are issued one Right
in respect of each DNI common share held, such Right being attached to
the share. On the occurrence of certain triggering events, including
the acquisition by a person or group of 20% or more of the outstanding
common shares of DNI pursuant to a transaction that does not meet
certain conditions, each Right will entitle its holder (other than the
acquiring person or group) to purchase $40.00 worth of DNI common
shares, at the then market price, for $20.00 (ie: at a 50% discount).
The complete text of the Amended and Restated Plan will shortly be
available from www.sedar.com.
DNI will shortly execute the Amended and Restated Plan agreement with
Equity Financial Trust Company, DNI's transfer agent. DNI will submit
the Amended and Restated Plan to its shareholders for approval and
reconfirmation at DNI's next annual and special meeting, scheduled for
September 15, 2011. In the event that the Amended and Restated Plan is
not approved and reconfirmed by DNI shareholders at this meeting, the
Amended and Restated Plan shall terminate, and DNI will no longer have
any form of shareholder rights plan.
DNI also announces that it has granted 2,875,000 stock options, pursuant
to the Company's Stock Option Plan, to its management, employees and
advisors, to allow for the purchase of up to an aggregate of 2,875,000
common shares at a price of 30 cents per share for up to five years. Of
the options granted, an aggregate of 2,725,000 were granted to officers
and directors.
DNI continues to focus its efforts on its polymetallic black shale
Properties in Alberta, and on its carried interest in the diamond
discovery on its Attawapiskat Property, Ontario.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 60,100,284
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DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement, Chairman - 416-595-1195
email ir@dnimetals.com. Also visit www.dnimetals.com