Canasil Adopts Shareholder Rights Plan
September 27, 2007
Vancouver, September 27, 2007 – Canasil Resources Inc. (“Canasil” TSX-V: CLZ, “the Company”) announces that, subject to acceptance by the applicable securities regulatory authorities, the Shareholder Rights Plan Agreement (the "Agreement") made as of April 20, 2007, with Pacific Corporate Trust Company is in full force and effect. The Agreement was ratified by the shareholders at the Company’s Annual General Meeting held on May 23, 2007. The Agreement is designed to ensure that all shareholders receive equal treatment and to maximize shareholder values in the event of a takeover bid or other acquisition that could lead to a change in control of the Company.
The Rights Plan will provide shareholders with adequate time to properly evaluate and assess a take-over bid, and will also provide the Board with additional time to consider any take-over bid, and if applicable, to explore alternative transactions in order to maximise shareholder value. The Rights Plan is not designed to prevent take-over bids that treat Canasil shareholders fairly. Pursuant to the terms of the Rights Plan, any bids that meet certain criteria intended to protect the interests of all shareholders are deemed to be “Permitted Bids”. In the event that a bid does not meet the Permitted Bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the take-over bid, to purchase additional common shares of Canasil at a significant discount to the market price of the common shares at the time. The Rights Plan is not being adopted in response to any proposal to acquire control of Canasil.
Canasil is a Canadian mineral exploration company with interests in precious and base metal properties in British Columbia, Canada, and in Durango, Sinaloa and Zacatecas States, Mexico. The Company’s directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of mineral properties and evaluating additional acquisition opportunities.
For further information please contact:
Calgary: Garth McTavish
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.