Gammon Gold Inc. says it has adopted a rights plan to give its board and shareholders time to react in the event of a hostile takeover bid.
The Canadian company, which has all of its mining operations in Mexico, said Thursday that the plan wasn't in response to any actual or threatened takeover bid. It added the move also wasn't intended to block any takeover bids either.
"The plan is designed to ensure that Gammon's shareholders are treated fairly in the event of a take-over bid for Gammon's common shares," it said in a release.
"And that Gammon's board of directors and shareholders will have adequate time to evaluate any unsolicited takeover bid and, if appropriate, evaluate and pursue other alternatives to maximize shareholder value."
The rights plan still faces shareholder approval before being filed with the Toronto Stock Exchange. The company intends to see their approval at a special meeting of shareholders some time within the next six months.
Other approvals are also required, including one by the New York Stock Exchange.
Gammon's corporate headquarters is in Halifax and its executive office is in Toronto.
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