TORONTO, May 15, 2013 /PRNewswire/ - Cerro Grande Mining Corporation (the "Company" or "CEG") (TSX: CEG) (OTCQX: CEGMF) is pleased to announce 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. 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. A Permitted Bid is a take-over bid that is made to all holders of voting shares of the Corporation (other than the bidder) for all of the voting shares held by them, by way of a take-over bid circular prepared in compliance with applicable securities laws, that remains open for acceptance by shareholders of the Corporation for 60 days (or such shorter period of time as may be approved by the board of directors of the Corporation from time to time), and that satisfies certain other conditions.
The rights plan must be confirmed by shareholders within six months of its effective date. The listing of the rights is subject to regulatory acceptance by The Toronto Stock Exchange. Application for approval has been made to the TSX.
The Corporation is not aware of any specific take-over bid for the Corporation that has been made or is contemplated.