Khan Resources Inc.

Khan Resources Inc.

December 02, 2009 14:53 ET

Khan Special Committee Engages Advisors; Shareholders Should Take No Action Regarding the ARMZ Offer

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2009) - Khan Resources Inc. (TSX:KRI)("Khan") announced today that it has a special committee of independent directors established that will be considering the recently-announced offer by Atomredmetzoloto JSC ("ARMZ"), along with any available alternatives that may enhance value for Khan shareholders. The Special Committee has engaged Haywood Securities Inc. as its financial advisor in connection with the above process and Davies Ward Phillips & Vineberg LLP is acting as legal counsel. Georgeson Shareholder Communications Canada Inc. has also been retained as information agent.

On November 27, ARMZ announced its intention to make an unsolicited offer for all of the outstanding Khan common shares by way of take-over bid at a cash price of $0.65 per share. Subsequently, on November 30, ARMZ filed a copy of its offer and related take-over bid circular on SEDAR and published an advertisement announcing its offer. "Consistent with its duties, the Special Committee of independent directors will carefully review and evaluate the formal offer made by ARMZ and its terms and conditions, along with any value-enhancing strategic alternatives that may be available, and will recommend a course of action to the Khan Board that is in the best interests of Khan and its shareholders", said Martin Quick, President and Chief Executive Officer of Khan. "We believe it is in the best interests of all shareholders to wait for the Special Committee to go through their process before taking any action on the ARMZ offer. The Khan Board of Directors will formally communicate its position with respect to the ARMZ offer once the Special Committee's process is concluded and a recommendation has been made to the Board."

As noted above, Georgeson Shareholder Communications Canada Inc. has been retained by Khan as information agent to provide the Company's shareholders with a resource for information concerning Khan's response to the ARMZ offer. Any questions concerning Khan or the ARMZ offer should be directed to Georgeson at: North American Toll-Free, 1-866-374-9877, or Banks and Brokers and Collect Calls outside North America, 1-212-806-6859.

Khan Resources Inc. (TSX:KRI) is a Canadian company engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in northeastern Mongolia, the site of a former Russian open-pit uranium mine. Khan holds interests in the Main Dornod Property, licensed for mining, and in the Additional Dornod Property, licensed for exploration. The Company's website is

Contact Information

  • Investor Relations Contacts:
    Khan Resources Inc., Martin Quick
    President & CEO
    Office: 416.360.3405
    The Buick Group
    Jonathan Buick
    Office: 416.915.0915, Ext. 302
    Toll Free: 1.877.748.0914