Copper Canyon Board of Directors Responds to NovaGold's Extension of its Hostile Takeover Bid
24 Fevereiro 2011 - 9:34PM
Marketwired
Copper Canyon Resources Ltd. ("Copper Canyon" or the "Company")
(TSX VENTURE: CPY) has received the notice of extension dated
February 23, 2011 ("Notice of Extension") from NovaGold Resources
Inc. ("NovaGold") extending its hostile takeover bid for all of the
outstanding Copper Canyon shares (the "NovaGold Offer") until 5:00
p.m. Eastern Time on March 8, 2011. The Board of Directors of the
Company (the "Board") has reviewed the Notice of Extension and is
disappointed that NovaGold has not increased the offer price for
Copper Canyon shares. The Board believes that the NovaGold Offer
substantially undervalues the Copper Canyon shares for the reasons
the Board indicated in the Board's directors' circular (the
"Directors' Circular") filed and mailed to Copper Canyon
shareholders on February 2, 2011.
NovaGold's Failure to Honour the Right of First Refusal
The Notice of Extension refers to correspondence between legal
counsel for Copper Canyon and NovaGold pertaining to the Company's
right of first refusal relating to the Copper Canyon property.
NovaGold has disclosed in the NovaGold Offer and in its previous
public disclosure documents that it holds its interest in the
Copper Canyon property in trust for the Galore Creek Partnership, a
50/50 partnership between NovaGold and Teck Resources Limited.
Copper Canyon has, through its legal counsel, twice requested
that NovaGold provide documentation relating to the transfer of
NovaGold's beneficial interest in the Copper Canyon property to the
Galore Creek Partnership and is still awaiting receipt of those
documents. The Board is of the view that this transfer may have
triggered the Company's right of first refusal relating to the
Copper Canyon property, giving the Company the right to acquire
NovaGold's 60% interest in the Copper Canyon property at a price
equal to the amount that the Galore Creek Partnership agreed to pay
for such interest. Copper Canyon intends to vigorously enforce its
rights.
Shareholders Rights Plan
On February 23, 2011, NovaGold made an application to the
British Columbia Securities Commission ("BCSC") requesting that the
BCSC promptly hold a hearing to consider cease trading of Copper
Canyon's shareholders rights plan (the "Plan"). The BCSC is
scheduled to hear this application on March 4, 2011. Copper Canyon
intends to contest this application, as the Board is of the opinion
that the Plan is necessary to provide time while Copper Canyon
enforces its rights under the right of first refusal, clarifies the
full extent of its ownership of the Copper Canyon property and
seeks alternative offers.
The Board Reaffirms its Recommendation that Shareholders REJECT
the NovaGold Offer
The Board continues to reaffirm its unanimous recommendation
that Copper Canyon shareholders REJECT the NovaGold Offer, and NOT
TENDER their shares to the NovaGold Offer. Further details on the
Board's recommendation are contained in the Directors' Circular,
which has been filed on the SEDAR website at www.sedar.com.
How to WITHDRAW Copper Canyon Shares from the NovaGold Offer
Copper Canyon shareholders who have deposited Copper Canyon
shares under the NovaGold Offer are urged to withdraw those Copper
Canyon shares. Please see the Directors' Circular for instructions
with respect to withdrawing your Copper Canyon shares or, for
additional information or assistance, please contact Mike Labach at
1 866 HUNT-ORE (486-8673).
The Board intends to communicate further with Copper Canyon
shareholders prior to the expiry of the NovaGold Offer as and when
material matters should arise.
About Copper Canyon
Copper Canyon Resources was created by way of a Plan of
Arrangement on June 9, 2006. Shareholders of Eagle Plains Resources
Ltd. (TSX VENTURE: EPL) approved the plan to reorganize the
company's mineral property assets in an effort to maximize
shareholder value. Under the terms of the arrangement, three of
Eagle Plain's projects: Copper Canyon, Severance and Abo (Harrison)
Gold, were transferred into Copper Canyon.
On behalf of the Board of Directors
Tim J. Termuende, President and CEO
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming 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.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Copper Canyon Resources Ltd. Mike Labach 1 866 HUNT
ORE (486 8673) mgl@copcanyon.com www.copcanyon.com
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