TORONTO, ONTARIO–(Marketwire – Feb. 17, 2011) – Gowest Amalgamated Resources Ltd. (TSX VENTURE:GWA) announced today the implementation of a shareholder rights plan. The rights plan is designed, to the extent possible, to ensure the fair treatment of Gowest’s shareholders in the event of a take-over bid and to provide Gowest’s board of directors and its shareholders with adequate time to evaluate any such take-over bid and, if appropriate, to seek out alternatives to maximize shareholder value.
The TSX Venture Exchange has accepted notice of the rights plan subject to, among other conditions, confirmation of the plan by the shareholders of Gowest on or prior to August 16, 2011. Gowest intends to seek shareholder confirmation of the rights plan at its next annual meeting of shareholders.
Gowest’s rights plan is similar to those adopted by other Canadian public companies. The rights plan is not intended to prevent take-over bids. As long as a bid is a permitted bid under the rights plan, being a bid that meets certain requirements intended to protect the interests of all shareholders, the provisions of the rights plan will not be invoked. A bid will be a permitted bid if it is made by way of take-over bid circular, remains open for a minimum of 60 days and otherwise complies with the permitted bid provisions of the rights plan. If a bid is not a permitted bid, then the rights plan will generally be invoked by the acquisition of 20% or more of the outstanding common shares of Gowest by any person (including persons related to or acting jointly or in concert with such person).
Under the provisions of the rights plan, one right was issued for each common share outstanding as of February 16, 2011. The rights will trade together with the common shares and will not be separable from the common shares or exercisable unless and until a take-over bid is made which is not a permitted bid. The rights will entitle shareholders, other than the person making the take-over bid (and any persons related to or acting jointly or in concert with such person), to purchase additional common shares at a 50% discount to the then prevailing market price.
A copy of the rights plan may be obtained on SEDAR at www.SEDAR.com.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit. Gowest is exploring additional gold targets on the Frankfield land package and continuing to evaluate acquisition targets in the vicinity of the Frankfield project area, part of the prolific Timmins, Ontario gold camp.
Forward-looking statements
This news release contains certain “forward looking statements”. Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Contact Information: Gowest Amalgamated Resources Ltd.
Greg Romain
President & CEO
(416) 363-1210
[email protected]
or
Gowest Amalgamated Resources Ltd.
Rory Quinn
Investor Relations
Toll Free: (877) 363-1218
Tel: (416) 363-1210 ext. 208
