MONTREAL, March 22, 2012 /CNW Telbec/ - Argex Mining Inc. ("Argex" or the "Corporation") today announced that its Board of Directors has, at a meeting of the board held on March 22, 2012, approved the adoption of a shareholder rights plan (the "Rights Plan") entered into with Canadian Stock Transfer Company Inc. as rights agent, effective March 22, 2012.
The purpose of the Rights Plan is to ensure that, in the context of a bid for control of Argex through an acquisition of the common shares of the Company (the "Shares"), the Board of Directors has sufficient time to consider the bid and assess alternatives for maximizing shareholder value as it considers in its judgment to be in the best interests of the Corporation. Additionally, the Rights Plan gives shareholders an equal opportunity to participate in such a bid; gives them adequate time to properly assess the bid; and lessens the pressure to tender typically encountered by a securityholder of an issuer that is subject to a bid.
Argex's Board of Directors is not aware of any third party currently considering or preparing any proposal to acquire control of the Corporation.
The rights plan has not been approved by the TSX Venture Exchange and is subject to ratification by the shareholders of the Corporation at its annual and special meeting of shareholders anticipated to take place on June 26, 2012.
The Rights Plan is intended to encourage any bid to satisfy certain minimum standards designed to promote fairness. Under the Rights Plan, one right has been issued with respect to each of the Shares issued and outstanding as of the effective date. These rights will become exercisable only when a person, including any party related to it, acquires or attempts to acquire 20 percent or more of the outstanding Shares without complying with the "Permitted Bid" provisions of the Rights Plan or without approval of Argex's Board of Directors.
A complete copy of the Rights Plan will be filed under the Corporation's profile on SEDAR at www.sedar.com.
About Argex Mining Inc.
ARGEX MINING INC. is a near-term producer of commodities that the world needs: Titanium Dioxide, Iron and Vanadium Pentoxide. With a primary goal of advancing rapidly towards production, Argex has adopted a simple and low-risk strategy for the scale-up of its proprietary process that allows it to produce high purity TiO2 directly from run-of-mine material from its 100% owned deposit.
The process is running continuously at the mini-plant in Mississauga, Ontario. The closed-loop process is environmentally friendly and produces minimal inert tailings.
Additionally, the Company owns 100% of the Mouchalagane property, which is a large Labrador Trough iron ore property that represents further potential upside for the Argex shareholders.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology. Forward-looking statements are based on the best estimates available to Argex at this time and involve known and unknown risks, uncertainties and other factors that may cause Argex's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Argex's business and activities appears under the heading "Risk Factors" in Argex's Amended and Restated Annual Information Form dated January 14, 2011 for the fiscal year ended December 31, 2009, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Argex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Argex. The forward-looking information contained in this press release is made as of the date hereof and Argex undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Roy Bonnell, President and Chief Executive Officer
Argex Mining Inc.
Argex Mining Inc.
Frédéric Bérard, Vice President
HKDP Communications and Public Affairs
514 395-0375, ext.259
The Howard Group