Champion Minerals Inc. Adopts Shareholder Rights Plan
TORONTO, ONTARIO -- (Marketwire) -- 06/30/11 -- Champion Minerals Inc. ('Champion Minerals' or the 'Company') (TSX: CHM)(FRANKFURT: P02) today announced that its board of directors approved the adoption of a shareholder rights plan (the 'Rights Plan') which takes effect today. The Rights Plan is similar to plans adopted by other Canadian companies, and has been adopted to ensure the fair treatment of shareholders in the event of any take-over bid for Champion Minerals' common shares.
The Rights Plan has conditionally been approved by the Toronto Stock Exchange and although the Rights Plan is effective immediately, it will be submitted to the shareholders of Champion Minerals for ratification and confirmation at the 2011 annual and special meeting, currently scheduled for July 27, 2011.
The primary objectives of the Rights Plan are to provide shareholders of Champion Minerals with adequate time to properly evaluate any offer, and also to provide the board of directors of Champion Minerals with additional time to assess any offer and, if appropriate, to explore and develop alternatives for maximizing shareholder value. The Rights Plan in no way prohibits a change of control of Champion Minerals in a transaction that is procedurally fair to its shareholders.
Thomas Larsen, president and chief executive officer of Champion Minerals said, 'The decision to adopt a Rights Plan was not made in response to any specific take-over bid for Champion Minerals, nor is the board of directors aware of any pending, or threatened take-over bid.'
The full text of the Rights Plan will be made available on Champion Minerals' website at www.championminerals.com, and will be posted under the Company's filings on the SEDAR website at www.sedar.com.
About Champion Minerals Inc.
Champion Minerals Inc. is a Canadian-based iron ore exploration and development company with properties located in the heart of Canada's premier iron ore mining district, the Labrador Trough. Champion Minerals is one of the largest landholders of highly prospective iron ore claims located southwest of Fermont, Quebec and northeast of Schefferville. The Company's core projects include Fire Lake North, Bellechasse and Harvey- Tuttle. The Fermont area is located close to water, power, roads and railways, and connects to three ports on Quebec's north shore of the St. Lawrence Seaway. Champion Minerals' shares are traded on the Toronto Stock Exchange under the symbol CHM.
Contacts:
Champion Minerals Inc.
Thomas G. Larsen
President and CEO
(416) 866-2200; Toll-Free: (877) 448-2201
info@championminerals.com
Champion Minerals Inc.
Jorge Estepa
Vice-President, Secretary and Treasurer
(416) 866-2200; Toll-Free: (877) 448-2201
info@championminerals.com
Champion Minerals Inc.
Salisha Hosein
Director, Investor Relations
(416) 866-2200; Toll-Free: (877) 448-2201
info@championminerals.com
www.championminerals.com