Tanzanian Royalty Exploration Corporation (“Tanzanian Royalty” or
the “Company”) (TSX:TNX)(NYSE Amex:TRX) today announced that its board of directors
has approved the adoption of a shareholder rights plan (the “Rights Plan”) designed to
encourage the fair and equal treatment of shareholders in connection with any take-over
bid for the outstanding common shares of the Company.
The Company’s board is not aware of any specific take-over bid for Tanzanian Royalty that has been made or is contemplated.
In the event that a take-over bid is made for the Company’s common shares in the future, the Rights Plan is intended to provide the Company’s board with adequate time to assess a take-over bid, to consider alternatives to a take-over bid and to provide Tanzanian Royalty shareholders with time to assess a take-over bid.
Under the Rights Plan, offers that satisfy certain standards designed to protect shareholder interests will be considered to be “Permitted Bids”. Specifically, a Permitted Bid must be made to all Tanzanian Royalty shareholders and must be outstanding for a minimum period of 60 days, among other conditions. If a bid does not qualify as a Permitted Bid, shareholders other than the acquiring person and joint actors will become entitled to exercise the Rights to acquire Tanzanian Royalty common shares at a significant discount to the prevailing market.
The Rights Plan is subject to regulatory approval and Tanzanian Royalty intends to put the Rights Plan before the shareholders for ratification. A copy of the Rights Plan will be filed shortly on SEDAR at
and on EDGAR at
, and can also be obtained from the Company upon written request.
James E. Sinclair
President and Chief Executive Officer
For further information, please contact Investor Relations at 1-800-811-3855