TORONTO, ONTARIO--(Marketwire - May 10, 2011) - Strait Gold Corporation (TSX VENTURE:SRD) ("Strait Gold" or the "Corporation") is pleased to announce that its Board of Directors has adopted a shareholder rights plan (the "Rights Plan") designed to encourage the fair and equal treatment of shareholders in connection with any take-over bid for the outstanding securities of the Corporation. The Rights Plan provides the Board of Directors with additional time to assess the advantages and disadvantages to any particular offer and to seek out alternative proposals in the best interests of all shareholders.
Strait Gold has not adopted the Rights Plan in response to any specific proposal to acquire control of its outstanding shares. The Rights Plan is similar to plans adopted by other Canadian companies and ratified by their shareholders. It is not the intention of the Rights Plan to entrench management or prevent a change of control of Strait Gold to the detriment of shareholders. The Rights Plan does not apply to take- over bids that meet certain requirements including that the bid be made by way of a take-over bid circular and be left open for at least 60 days so as to ensure that shareholders have an adequate opportunity to assess the merits of the bid.
The Rights Plan has been conditionally accepted by the TSX Venture Exchange subject to obtaining shareholder ratification of the Rights Plan at the Company's Annual and Special Meeting to be held on June 23, 2011 and in any event by no later than November 9, 2011. If ratified, the Rights Plan will have an initial term which expires at the annual meeting of shareholders of Strait Gold to be held in 2014, and may be extended for a second term lasting until the annual meeting of shareholders to be held in 2017. A copy of the Rights Plan will be available for viewing on SEDAR at www.sedar.com, and can also be obtained from Strait Gold.
About Strait Gold Corporation:
Strait Gold Corporation is a Canadian mineral exploration company active solely in Peru and listed on the TSX Venture Exchange. In addition to the Alicia Project, Strait Gold holds a 100% interest in the Letra Rumi South copper-silver property and the Culebrilla gold-silver property, both in Ancash Department approximately 250 km north of Lima. To learn more about Strait Gold, please visit our website at www.straitgold.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Jim Borland
President
416-223-9970
info@straitgold.com
www.straitgold.com