Dentonia passes rights plan for shareholders

Shareholders of Dentonia Resources (VSE) have approved a poison pill which they will swallow in the event of an unsolicited takeover bid.

Under the new shareholder rights protection plan, a “permitted bid” must be open for 90 days, apply to all shareholders, and extend for an additional 10-days if the bidder acquires at least 50% of the outstanding shares. If the takeover is not a “permitted bid,” and the bidder’s shareholding reaches 20%, the rights will detach from the common shares. The rights give the shareholder (but not the bidder) the right to acquire $25 worth of stock for each share held at a discount of 50% of the current market value. For example, if the stock were trading at 50 cents, a shareholder with one share would be able to buy 100 additional shares at 25 cents each. Meanwhile, details of a planned diamond exploration program in the Northwest Territories will be announced after the signing of certain ancillary agreements among Dentonia and its joint-venture partners. These include Kettle River Resources (VSE), Horseshoe Gold Mining (ASE) and Kennecott. Also, Dentonia reports that negotiations are progressing on a joint venture to develop the Asgat silver-copper deposit in Mongolia. The deposit is believed to contain a potential resource exceeding 225 million oz. silver and 500 million lb. copper.

Once it establishes a base in the Asian country, Dentonia plans to carry out grassroots exploration for gold.