African Gold Group, Inc. announced today that its Board of Directors has adopted a shareholder rights plan, effective immediately, designed to enhance the Company’s ability to obtain the best value for all shareholders in connection with any bidder attempting to acquire control of the Company.
The rights issued under the rights plan become exercisable when a person, together with any parties related to it, acquires or announces its intention to acquire 20% or more of the Company’s outstanding common shares without complying with the “Permitted Bid” provisions of the rights plan or without approval from AGG’s Board of Directors. Should such an acquisition occur, rights holders (other than the acquiring person and related persons) can purchase common shares of the Company at a substantial discount to the then market price.
Under the rights plan, a Permitted Bid is a bid made to all holders of the Company’s common shares for all of their shares that is open for acceptance for not less than 60 days. If at the end of 60 days at least 50% of the outstanding shares, other than those owned by the offeror and certain related parties, have been tendered, the offeror may take up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender.
The rights plan is subject to regulatory approval, and requires confirmation by the Company’s shareholders within six months. A more detailed summary of the rights plan is set out in AGG’s Material Change Report which will be filed shortly with the Canadian securities regulatory authorities and will be available at www.sedar.com. A full copy of the rights plan will also be available shortly at www.sedar.com.
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. To date, the Company controls a total of twelve gold concessions that are consolidated in five distinct standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa.
Additional Information is available at
AFRICAN GOLD GROUP INC.
151 Yonge St.