May 01, 2007
International Frontier Adopts Shareholder Rights Plan
International Frontier Resources Corporation ("IFR" -- TSX-V) announced today that its Board of Directors has adopted a Shareholder Rights Plan to ensure value is maximized for shareholders in a transaction to acquire 20% or more of the Company. The purpose of adopting the Plan is to deal with the concern that existing legislation does not permit sufficient time for the Board of Directors and shareholders to properly evaluate a take-over bid or pursue alternatives with a view to maximizing shareholder value.
The Plan is similar to those adopted by other Canadian companies, and is consistent with corporate practice and addresses guidelines for such plans set out by institutional investors. The Plan is not intended to prevent take-over bids. As long as a bid meets certain requirements intended to protect the interests of all shareholders (a "Permitted Bid"), the provisions of the plan will not be invoked. A bid will be a Permitted Bid if it is made by way of a take-over bid circular, remains open for a minimum of 60 days and otherwise complies with the Permitted Bid provisions of the Plan. If a bid is not a Permitted Bid, then the Plan will be invoked by an acquisition of 20% or more of the outstanding common shares of the Company. Under the provisions of the Plan, one right has been issued for each common share of the Company outstanding as of today. The rights will trade together with the common shares and will not be separable from the common shares or exercisable unless a take-over bid is made which is not a Permitted Bid. The rights will entitle shareholders, other than shareholders making the take-over bid, to purchase additional common shares of the Company at a substantial discount to the market price at the time.
The TSX-V has accepted the Plan for filing effective April 30, 2007 subject to final shareholder approval. In accordance with the regulatory policy, a shareholder rights plan must be ratified by shareholders within six months of its adoption. The Plan will be replaced before shareholders for ratification at the next annual meeting of shareholders scheduled for June 11, 2007. A complete copy of the Plan is available from the Company.
For additional information visit www.internationalfrontier.com or contact;
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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