Canico Resource Corp.
TSX : CNI

Canico Resource Corp.

September 07, 2005 09:01 ET

Canico Resource Corp. Board of Directors Approves Shareholder Rights Plan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 7, 2005) - Canico Resource Corp. (TSX:CNI) announced today that its board of directors has approved the adoption of a Shareholder Rights Plan for which shareholder approval will be sought at the Canico annual meeting of shareholders to be held in December, 2005.

The purpose of the Rights Plan is to provide shareholders and the Canico Board of Directors with adequate time to consider and evaluate any unsolicited bid made for Canico, 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 Canico and to ensure that any proposed transaction is in the best interests of Canico's shareholders.

Effective today, rights will be issued and attached to all Canico common shares. A separate rights certificate will not be issued until such time as the rights become exercisable (which is referred to as the "separation time"). The rights will become exercisable only if a person, together with its affiliates, associates and joint actors, acquires or announces its intention to acquire beneficial ownership of shares which when aggregated with its current holdings total 20% or more of the outstanding Canico common shares (determined in the manner set out in the Rights Plan), other than by a Permitted Bid (as defined in the Rights Plan). Following an acquisition of shares otherwise prohibited by the Rights Plan, each right held by a person other than the acquiring person and its affiliates, associates and joint actors would, upon exercise, entitle the holder to purchase that number of Canico common shares which have a current market value equal to twice the exercise price payable for such common shares.

Canico is a Canadian-based junior resource company focused on the development of the Onca-Puma nickel laterite project located in Para State, Brazil.

CANICO RESOURCE CORP.

J. Michael Kenyon, President & Chief Executive Officer


Contact Information

  • Canico Resource Corp.
    J. Michael Kenyon
    President & Chief Executive Officer
    (604) 669-9446
    (604) 669-9447 (FAX)
    www.canico.com