TORONTO, ONTARIO--(Marketwire - July 22, 2009) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) ("Alexandria" or the "Company") reported today that it has acquired the remaining 49% interest in the Valdora property from Thundermin Resources Inc., bringing the Company's total interest in the property to 100%.
The agreement with Thundermin allows Alexandria the right to purchase the remaining 49% interest not already held by Alexandria, under the same terms as that which Alexandria recently purchased from Teck Resources Ltd. (Press Release, July 2, 2009). Alexandria agrees to pay to Thundermin 75,000 units, each unit consisting of 1 Treasury share of Alexandria plus one share-purchase warrant, where each warrant is exercisable for 2 years at $0.15. The interest is subject to a 1% Net Smelter Return royalty, of which 1/2 may be purchased for $200,000.
Eric Owens, President of Alexandria Minerals said, "The completion of the Valdora property purchase enhances the development potential of our important Akasaba project next door because some of those targets may continue onto Valdora. Our strategy to building our property portfolio is to acquire properties that complement our already established projects."
In other matters, the Board of Directors of the Company has adopted a Shareholder Rights Plan (the "Rights Plan") effective immediately. The Rights Plan was adopted by the independent directors of Alexandria, is subject to the approval of the TSX Venture Exchange and must be ratified by shareholders at the Company's next general meeting of the shareholders, failing which it will cease to have effect. Subsequent to certification by Alexandria shareholders, the Rights Plan will thereafter be in effect for an initial term of three years and is subject to reconfirmation by shareholders at the third annual meeting held after each confirmation.
The Rights Plan is designed both to encourage the fair and equal treatment of Alexandria's shareholders in connection with any potential take-over bid and to ensure that the Company's shareholders and its Board of Directors, in compliance with securities laws, have sufficient time to consider whether there are other options that would more effectively maximize shareholder value. The Rights Plan cannot be utilized to deny shareholders the opportunity to tender into any tender offer and is not designed to entrench management or Alexandria's Board. The terms of the Rights Plan are similar to those in rights plans recently approved by shareholders of other Canadian corporations.
Under the terms of the Rights Plan, one right (a "Right") will be issued in respect of each outstanding common share of the Company at the close of business July 20, 2009 and in respect of each common share or other voting share of the Company issued thereafter (subject to the terms of the Rights Plan). A Right only becomes exercisable upon the occurrence of a Flip-In Event, which is a transaction by which a person becomes an Acquiring Person and which otherwise does not meet the requirements of a Permitted Bid. An Acquiring Person is generally a person who becomes the beneficial owner of 20% or more of the outstanding common shares of the Company without complying with the "Permitted Bid" provisions of the Rights Plan or without approval of Alexandria's Board of Directors. Should a Flip-In Event occur, subject to all other provisions of the Rights Plan, each Right would entitle a holder, other than the Acquiring Person or persons related to it, to purchase common shares of Alexandria at a significant discount to the then current market price. A "Permitted Bid" is a bid made by way of a take-over bid circular to all Alexandria shareholders that is open for at least 60 days. If at the end of such period more than 50% of Alexandria's then outstanding common shares, other than those common shares owned by the party making the bid and certain related persons, have been tendered to the bid, such party may take up and pay for the common shares but must extend the bid for a minimum of 10 business days to allow other shareholders to tender.
The Rights issued under the Rights Plan will initially attach to and trade with Alexandria's common shares and no separate certificates will be issued unless an event triggering these Rights occurs.
A copy of the Rights Plan will be filed on SEDAR (www.sedar.com).
Alexandria Minerals Corp. is a Toronto-based mineral exploration and development company, focused on the exploration for precious metals on mineral properties located in Northern Quebec and Ontario. The Company's management has extensive global experience with small to large mining companies, from grass-roots exploration to the exploitation of mineral deposits. The Company is a reporting issuer in the provinces of British Columbia, Alberta and Ontario.
WARNING: This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Alexandria Minerals Corporation relies upon litigation protection for forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
