Tan Range adopts plan

Tanzanian-focused Tan Range Exploration (TNX-V), which holds a 90% interest in the Itetemia gold property, adjacent to the Bulyanhulu deposit, has adopted a shareholder rights plan to prevent the possibility of a hostile takeover by another company.

The plan will be in effect until 2005, assuming shareholders give their consent. Company President Marek Kreczmer points out that “this plan was not adopted in response to any specific proposal or effort to acquire control of Tan Range, and Tan Range is not aware of any such proposal or effort.”

The rights issued under the plan will initially attach to and trade with Tan Range’s common shares. The rights become exercisable only when a person or party announces his or its intention to acquire ownership of 20% or more of Tan Range’s shares without complying with the “permitted bid” provisions of the plan or without the approval of Tan Range’s board of directors. Should such an acquisition occur, each right would entitle a holder to buy shares of Tan Range at a 50% discount to the then-current market price.

A “permitted bid” is a bid made to all holders of Tan Range’s common shares that is open for at least 45 days. If, at the end of the 45-day period, more than half of Tan Range’s total of then-outstanding shares, other than those owned by the party making the bid, have been rendered, then that party may take up and pay for the shares but must extend the bid for a further 10 business days.

Besides Itetemia in Tanzania, Tan Range has precious metals properties in several other African countries.