TIMMINS, ON, Jan. 24, 2012 /CNW/ - Moneta Porcupine Mines Inc. (TSX: ME) (OTC: MPUCF) (XETRA: MOP) ("Moneta" or the "Company") announces that its board of directors (the "Board") has approved the adoption of a shareholder rights plan (the "Plan"), which takes effect today. The Plan is similar to plans adopted by other Canadian companies, and has been adopted to ensure the fair treatment of shareholders in the event of any take-over bid for Moneta's common shares.
Ian C. Peres, President and CEO of Moneta commented, "We have received comments from retail and institutional investors that the gold resource news we released on December 1, 2011 is a game changer for both Moneta and the entire Timmins Gold Camp. These comments included numerous references to the fact that Moneta's market capitalization is severely disconnected from the perceived value of our current gold resources. Accordingly, the Moneta board has elected to implement a Shareholder Rights Plan for the protection of all shareholders."
The Plan has been conditionally approved by the Toronto Stock Exchange and is subject to approval by Moneta's shareholders at the 2012 annual and special meeting. A copy of the Plan will be available on the Company's website at www.monetaporcupine.com and on SEDAR at www.sedar.com.
The primary objectives of the Plan are to provide shareholders with adequate time to properly evaluate any offer, and also to provide the Board with additional time to assess any offer and, if appropriate, to explore and develop alternatives for maximizing shareholder value. The Plan in no way prohibits a change of control of the Company in a transaction that is procedurally fair to its shareholders. There is currently no proposed or pending unsolicited take-over bid for the Company of which management is aware.
The Plan was adopted by the Board of Directors following the announcement of a major Mineral Resource Estimate for Moneta's Golden Highway Project described in detail in our December 1, 2011 press release.
The Highlights of the new NI 43-101 resource estimate include:
- The Mineral Resource Estimate is as follows:
- Indicated: 1,071,000 ounces (33.5 Mt at 1.00 g/t Au); plus
- Inferred: 2,069,600 ounces (47.8 Mt at 1.35 g/t Au);
- The In-Pit Mineral Resources are as follows;
- Indicated: 1,001,600 ounces (32.9 Mt at 0.95 g/t Au); plus
- Inferred: 1,280,000 ounces (40.6 Mt at 0.98 g/t Au);
- Strong potential for both in pit and out of pit resource growth.
Moneta's Golden Highway Project includes highly prospective Timiskaming sediments with banded iron formation and associated mafic to ultramafic volcanics that define 12 km of the Destor Porcupine Fault Zone in Michaud Township near Timmins, Ontario. Gold mineralization occurs in quartz and quartz-carbonate stockworks and discrete vein zones, all with variable ankerite, hematite and sericite alteration.
R. Skeries, P.Geo., is the Qualified Person for the purposes of NI 43-101 and has approved the technical content of this release.
Moneta holds a 100% interest in 5 core projects strategically located along the Destor Porcupine Fault Zone in the world class Timmins Camp with excellent infrastructure including access roads, water, electricity, and mills. The land position is one of the largest - after three gold producers - including the highly prospective Golden Highway Project which covers 12 kilometers of a volcanic/sedimentary belt along the Destor Porcupine Fault Zone, similar to that which has hosted the bulk of the 75 million ounces mined to date in the Timmins Camp.
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.
For further information:
Ian C. Peres, President & CEO