SOURCE: Royal Standard Minerals

Royal Standard Minerals

December 23, 2010 16:05 ET

Royal Standard Minerals, Inc.-RSM Adopts Shareholders Rights Plan

HEATHSVILLE, VA--(Marketwire - December 23, 2010) - Royal Standard Minerals, Inc. (OTCBB: RYSMF) (the "Company") announced today the adoption by its Board of Directors of a Shareholder Rights Plan (the "Plan"), similar to those adopted by many other Canadian corporations. The Board is of the view that the Company's property portfolio and future prospects are not adequately reflected in the trading price of the Company's common shares. The Plan is being adopted to address the Board's concerns that current legislation does not provide sufficient time for the Board and shareholders of the Company to properly evaluate an unsolicited bid or pursue alternatives with a view to maximizing shareholder value. The Plan seeks to ensure that all shareholders of the Company have an equal opportunity to participate in the benefits of a takeover bid.

The Plan does not attempt to discourage bids. It allows a potential bidder to make a "permitted bid" directly to the shareholders of the Company without the prior approval of the Board. Such permitted bid must be made to all shareholders and must remain open for a minimum period of 60 days after the date of the bid and for a further period of 10 business days after the offeror publicly announces that the shares deposited constitute more than 50% of the outstanding common shares held by independent shareholders. The Plan also allows for a "competing permitted bid" to be made while the permitted bid is in existence.

To implement the Plan, the Board of Directors of the Company has authorized the issue of one Right in respect of each outstanding common share of the Company, to holders of record at 4:00 p.m. (Toronto time) on December 22, 2010. For administrative convenience, the Rights will trade with the common shares and be represented by the certificates representing common shares.

The Plan is effective immediately and expires 10 years after the date of adoption unless earlier terminated or extended.

Neither the Board nor management of the Company is aware of any pending or threatened take-over bid for the Company.

RSM is a natural resource exploration and development company,, the Company owns and controls several precious metal properties in the State of Nevada.

For further information about this release contact Mr. Roland Larsen, (775) 487-2454 and/or Mr. Rich Kaiser, Investor Relations, 800-631-8127.

Contact Information

  • Contact:
    Rich Kaiser