Attached files
| file | filename |
|---|---|
| 8-K - WHITE MOUNTAIN TITANIUM CORP | v208353_8k.htm |
| EX-4.1 - WHITE MOUNTAIN TITANIUM CORP | v208353_ex4-1.htm |
| EX-3.1 - WHITE MOUNTAIN TITANIUM CORP | v208353_ex3-1.htm |
White
Mountain Board Approves Stockholder Rights Plan.
SANTIAGO,
Chile, January 18, 2011 — White
Mountain Titanium Corporation ("White Mountain" or the "Company") (OTC
Bulletin Board: WMTM - News) reports that
the Company’s Board of Directors has approved the adoption of a stockholder
rights plan (the “Rights Plan”) that provides all stockholders of record at the
close of business January 28, 2011, a distribution of the right to
buy shares of a new series of preferred stock. The Rights Plan gives White
Mountain stockholders the opportunity to obtain maximum value for their shares
by providing the Company’s board of directors the ability to fully evaluate
alternatives in the event of an unsolicited takeover bid.
The
rights to purchase the new preferred stock series will expire on January 17,
2021 unless earlier redeemed or exchanged in accordance with the terms of the
Rights Plan. The rights will be triggered only if a person or group
acquires or announces a tender offer for 15 percent or more of White Mountain’s
common stock. Each holder of a right, other than the acquirer, would be entitled
to receive, upon payment of the purchase price which is initially set at $4.00
per right, a number of shares of White Mountain common stock having a value
equal to two times such purchase price, but not less than a value of $0.50 per
share. The Rights Plan provides that a committee of the Board of
Directors comprised of independent directors will review the plan at least once
every three years to determine whether maintaining the plan is in the best
interest of the Company’s stockholders. The rights will trade with
White Mountain’s common stock, unless they are separated because of certain
future events. The rights distribution is not taxable to stockholders. The Plan
does not weaken the Company’s financial strength or interfere with its business
plans. Issuance of the rights has no dilutive effect and will not change the way
the Company’s shares are traded.
“This
Rights Plan will prudently protect our stockholders’ interests by giving our
Board the flexibility to fulfil their fiduciary duty to maximize stockholder
value by weighing third party inquiries in an orderly manner,” said Michael
Kurtanjek, the Company’s President and CEO. “We are taking this step now in part
because we believe White Mountain’s shares are priced well below any reasonable
valuation of our assets and long-term prospects. In addition, the
Rights Plan preserves the Company’s option to remain independent and pursue its
long-term business plan.” Mr. Kurtanjek added that the Board’s
adoption of this plan was not in response to a specific takeover threat or
accumulation of stock. Rather, he said it serves as a general deterrent to
potentially unfair practices and parallels plans adopted by other companies
seeking a sound and reasonable means of safeguarding stockholders’
interests.
About
White Mountain Titanium Corporation
The
Company holds mining concessions on the Cerro Blanco property currently
consisting of 33 registered mining exploitation concessions and five mining
exploration concessions in the process of being constituted, over approximately
8,225 hectares located approximately 39 kilometres west of the City of Vallenar
in the Atacama, or Region III, geographic region of northern Chile. The
Company's principal objectives are to advance the Cerro Blanco project towards a
final engineering feasibility, and to secure off-take contracts for the planned
rutile concentrate output. It would be the intention to sell the rutile
concentrate to titanium metal and pigment producers. Work also continues to
investigate the commercial viability of producing a feldspar co-product. The
feldspar could find applications in the glass and ceramics
industries.
The OTC
BB has not reviewed and does not accept responsibility for the adequacy or
accuracy of this release. 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.
Contact:
White
Mountain Titanium Corporation
Michael
Kurtanjek, President
(56) 2
657-1800
Brian
Flower, Chairman
(604)
408-2333