MONCTON, NB, July 13 /CNW/ - Major Drilling Group International Inc. (TSX:MDI) (the "Corporation") announces today that its Board of Directors has adopted a shareholder rights plan (the "Rights Plan").
The Rights Plan was not adopted by the Board of Directors in response to any specific proposal or intention to acquire control of the Corporation and the Board of Directors is not aware of any such proposal or intention.
The Rights Plan is effective immediately, subject to TSX acceptance and ratification and confirmation by the Corporation's shareholders at the next annual and special meeting of shareholders to be held on September 11, 2007. It is designed to ensure the fair treatment of shareholders in any take-over bid made for the Corporation's common shares. The Rights Plan is intended to provide shareholders and the Board of Directors with adequate time to consider and evaluate any unsolicited take-over bid made for the Corporation's common shares and, if appropriate, to seek out other alternatives to maximize shareholder value.
The Rights Plan will be subject to reconfirmation at every third annual meeting of shareholders following the September 11, 2007 meeting until its expiry in 2016. If the shareholders do not ratify and confirm the Rights Plan, the Rights Plan will terminate and cease to be effective at that time. The full text of the Rights Plan will be posted on SEDAR at www.sedar.com.
Based in Moncton, New Brunswick, Major Drilling Group International Inc. is one of the world's largest metals and minerals contract drilling service companies. To support its customers' mining operations and mineral exploration activities, Major Drilling maintains operations in Canada, the United States, Mexico, South and Central America, Australia, Indonesia, Africa and Mongolia.