Platinum Group (PLG) Adopts Poison Pill Provision
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Platinum Group Metals Ltd. (AMEX: PLG) has approved the adoption of, and that it has now adopted, a shareholder rights plan (the "Plan") subject to shareholder approval. The Plan is now effective and will require shareholder ratification within six months to remain in place.
The Company's management considers its current market valuation to be in contrast to the advancement of the Company and its business at this time. As a result, the Board of Directors undertook a review to consider the need for a shareholder rights plan. The April 4, 2012 approval of the Company's Mining Right for the 74% owned WBJV Project 1 Platinum mine, the impending Project 1 off-take and financing milestones for a US $260 million project loan and the Company's new Waterberg Platinum discovery were important considerations for the Board of Directors. The purpose of the Plan is to provide shareholders and the Company's Board of Directors with adequate time to consider and evaluate any unsolicited bid made for the Company, to provide the Board with adequate time to identify, develop and negotiate value-enhancing alternatives, if considered appropriate, to any such unsolicited bid, to encourage the fair treatment of shareholders in connection with any take-over bid for the Company and to ensure that any proposed transaction is in the best interests of the Company's shareholders.
The Plan is not intended to prevent or discourage a fair bid for the Company.
The Company's management considers its current market valuation to be in contrast to the advancement of the Company and its business at this time. As a result, the Board of Directors undertook a review to consider the need for a shareholder rights plan. The April 4, 2012 approval of the Company's Mining Right for the 74% owned WBJV Project 1 Platinum mine, the impending Project 1 off-take and financing milestones for a US $260 million project loan and the Company's new Waterberg Platinum discovery were important considerations for the Board of Directors. The purpose of the Plan is to provide shareholders and the Company's Board of Directors with adequate time to consider and evaluate any unsolicited bid made for the Company, to provide the Board with adequate time to identify, develop and negotiate value-enhancing alternatives, if considered appropriate, to any such unsolicited bid, to encourage the fair treatment of shareholders in connection with any take-over bid for the Company and to ensure that any proposed transaction is in the best interests of the Company's shareholders.
The Plan is not intended to prevent or discourage a fair bid for the Company.
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