VANCOUVER, Dec. 11 /CNW/ - Lincoln Mining Corporation (the "Company" or "Lincoln") announces that its board of directors (the "Board") has approved the adoption of a Shareholder Rights Plan Agreement (the "Rights Plan" or "Plan"). The Company intends to seek shareholder ratification of the Rights Plan at the Company's annual general meeting to be held in 2010. The TSX Venture Exchange (the "Exchange") has accepted for filing the Rights Plan, subject to shareholder ratification.
The Rights Plan was adopted to ensure equal treatment of shareholders and to provide the Board with sufficient time, in the event of a take-over bid or tender offer for voting shares of the Company, to pursue alternatives which could enhance shareholder value. On December 14, 2009, rights (the "Rights") will be issued and attached to all of Lincoln's outstanding common shares as at the record time of 4:00 p.m. on December 11, 2009 (the "Record Time"). A separate rights certificate will not be issued until such time as the Rights become exercisable. The Rights will become exercisable if a person, together with its affiliates, associates and any other person with whom such person is acting jointly or in concert (determined in accordance with the Rights Plan), acquires or announces its intention to acquire beneficial ownership of voting shares of the Company which when aggregated with its current holdings total 20% or more of the outstanding voting shares. The Rights Plan contemplates the grandfathering of any person that at the Record Time beneficially owns 20% or more of the outstanding voting shares of the Company, subject to certain conditions. Ravensden Asset Management Inc. ("Ravensden"), which has reported that it owns approximately 26.2% of the Company's outstanding shares on a partially diluted basis, will be grandfathered under the Plan, subject to the provisions of the Plan. The Company is not aware of any other person that will be grandfathered under the Plan.
The Rights Plan will not be triggered by a "Permitted Bid" which is defined as a bid which is outstanding for a minimum of 60 days, is made to all of the shareholders of the Company for all of their common shares and, in addition to other specified conditions (as detailed in the Rights Plan), is accepted by a majority of independent shareholders.
The Company has no knowledge of any pending or threatened takeover bid for the Company, and has no reason to believe that any takeover offer for the Company's shares is imminent.
For more information, please see a copy of the Rights Plan which has been filed under the Company's profile at www.sedar.com.
On Behalf of the Board of Directors:
Paul Saxton, President and CEO
Lincoln Mining Corp. is a Canadian precious metals exploration and development company with several projects in various stages of exploration and development which include the Pine Grove gold property, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico. In the United States, the Company operates under Lincoln Gold US Corp., a Nevada corporation.
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.
SOURCE LINCOLN MINING CORPORATION
For further information: For further information: Investor Relations at (604) 688-7377 or visit the Company's website at www.lincolnmining.com