Batero Gold Corp.(CVE:BAT) said Thursday that its board has approved a shareholder rights plan agreement to protect the company from hostile takeover bids.
rights plan will give shareholders enough time to properly assess a
take over bid, and will give the company's board the option to explore
alternative transactions, if applicable.
If a takeover offer
does not meet the "permitted bid" requirements as defined by the
shareholder rights plan, shareholders will be able to buy additional
common shares of Batero at a significant discount to the market price at
A permitted bid must be made by way of a take-over
bid circular prepared in compliance with applicable securities laws and,
in addition to certain other conditions, must remain open for 60 days.
company said the shareholder rights plan, which is subject to the
approval of the TSX Venture Exchange, was not adopted in response to any
formal offer to acquire Batero.
The plan, which
will have a term of three years, will be presented to shareholders to be
ratified at the company's annual meeting, to be held no later than
In April, Batero closed an oversubscribed special
warrant financing co-led by Raymond James and Cormark Securities. The
company said it also completed a non-brokered special warrant financing
on the same terms as the brokered financing.
Batero issued a total of 9.7 million special warrants at a price of 65 Canadian cents each, for total proceeds of $6.3 million.
The company's flagship project is the Batero-Quinchia property in Colombia.
As part of its planned 2012 work program to evaluate the potential of
a high grade development option at the La Cumbre porphyry deposit in
the southern area of the mineral resources at the project, the company
said it will look to improve project economics through low cost heap
leach mineral processing.
The company is also advancing metallurgical test work and deposit modeling to increase oxide resources, gold grade and recovery.
Within the technical report filed earlier in March, it showed zones
of higher grade oxide resources, grading more than 1 gram per tonne
(g/t) gold near surface at La Cumbre and at 11.42 g/t gold over 5.8
metres adjacent to the deposit, remain open to delineate.