No rights plans for Golden Rule

A rights plan agreement introduced by Golden Rule Resources (TSE) in 1991 has been terminated by the company. President Glen Harper said the directors believed it was in the best interest of the company to redeem all of the outstanding rights.

A rights plan works to stall (but not ultimately prevent) a hostile takeover bid by diluting the shareholding of a company, thus making it more difficult for an outside firm to gain voting control.

Meanwhile, Golden Rule has transferred, subject to regulatory and board approval, its 50% interest in three Quebec properties — Dubuisson, Senneville/Lac Blouin South and Cadillac — to Northern Abitibi Mining (ASE). Northern Abitibi will issue 645,157 common shares to Golden Rule, which will retain a 2% royalty on net smelter returns. Golden Rule is the majority shareholder of Northern Abitibi.