GlobeStar
Adopts Shareholder Rights Plan
Toronto, Ontario, Canada (May 8th,
2007) - GlobeStar Mining Corporation
("GlobeStar" or the "Corporation") announced today that its Board
of Directors adopted a Shareholder Rights Protection Plan (the
"Plan"). The Plan is similar
to existing shareholder rights plans adopted by other Canadian public companies.
Based upon the Corporation's future prospects and share distribution, the Board
of Directors determined that it is in the best interests of GlobeStar to adopt
the Plan.
The Plan is subject to subject to approval of the
Toronto Stock Exchange, and requires confirmation by GlobeStar shareholders
within six months of the Plan's effective date. The Plan will be put to
shareholders for their consideration at the annual and special meeting of
shareholders scheduled for June 14, 2007.
If the Plan is not confirmed by shareholders, the Plan and all
outstanding rights will terminate and be void and of no further force and
effect.
The Plan objectives are to ensure, to the extent
possible, that all shareholders of the Corporation are treated equally and
equitably in connection with any takeover bid for the Corporation. The Plan
discourages discriminatory, coercive or unfair takeovers of the Corporation and
gives the Board of Directors time if, in the circumstances, the Board of Directors determines it is appropriate to take such time, to pursue alternatives
to maximize shareholder value in the event an unsolicited takeover bid is made
for all or a portion of the outstanding Common Shares of the Corporation.
The Board of Directors of the Corporation has
implemented the Plan by authorizing the issuance of one right in respect of each
Common Share of the Corporation outstanding at the close of business on May 3,
2007 (the "Record Time"). In addition, the Board authorized the issuance
of one Right in respect of each additional Common Share issued from treasury
after the Record Time. The rights trade with and are represented by GlobeStar's
Common Shares. Until such time as
the rights separate from the Common Shares, when they become exercisable, rights
certificates will not be distributed to shareholders.
If a person, or a group acting jointly or in concert,
acquires (other than pursuant to an exemption available under the Plan)
beneficial ownership of 20% or more of the Common Shares, rights (other than
those held by such acquiring person which will become void) will separate from
the Common Shares and permit the holder thereof to purchase Common Shares at a
50% discount to their market price. A person, or a group acting jointly or in
concert, who is the beneficial owner of 20% or more of outstanding Common Shares
as of the Record Time is exempt from the dilutive effects of the Plan provided
such person (or persons) does not increase its beneficial ownership by more than
1% (other than in accordance with the terms of the Plan). At any time prior to
the rights becoming exercisable, the Board of Directors may waive the operation
of the Plan with respect to certain events before they occur. "It is prudent that the GMI Board has
adopted this plan to ensure all shareholders rights are protected" states Larry
Ciccarelli, Chairman.
The
issuance of the rights is not dilutive and will not affect reported earnings or
cash flow per share until the rights separate from the underlying Common Shares
and become exercisable or until the exercise of the rights. The issuance of the
rights will not change the manner in which shareholders currently trade their
Common Shares.
About
GlobeStar
GlobeStar
Mining Corp. is a well funded mine development company, developing the permitted
Cerro de Maimn copper/gold project, currently anticipated to be due for
completion in summer 2008. The Company is also aggressively exploring an extensive base and precious metals exploration portfolio in the Dominican
Republic with a US$ 4M exploration budget for nickel and copper/gold
exploration, including a 207-hole drilling program on the Company's nickel
concessions.
Contact:
GlobeStar
Mining Corporation
William
Fisher
or
JP Chauvin
CEO
President and COO
Email:
wfisher@globestarmining.com
Email:
jp.chauvin@globestarmining.com
Tel.:
(416) 868-6678
Tel.: (416) 868-6678
Bay
Street Connect
Coal
Harbor Communications
Gus
Garisto
Dale Paruk
Email:
gus@baystreetconnect.com
Email: dale@coal-harbor.com
Tel.: (416) 607 6023
Tel.:
(604) 662-4505
Fax: (604)
662-4547
Reader
Advisory
The information in this news release may include certain information
and statements about management's view of future events, expectations, plans and
prospects that constitute forward-looking statements. Assumptions that are
subject to significant risks and uncertainties are the basis for these
statements. Because of these risks and uncertainties and, as a result of a
variety of factors, the actual results, expectations, achievements or
performance may differ materially from those anticipated and indicated by these
forward looking statements. Although GlobeStar believes that the expectations
reflected in forward looking statements are reasonable, we can give no
assurances that the expectations of any forward-looking statements will prove to
be correct. GlobeStar disclaims any intention, and assumes no obligation, to
update or revise any forward-looking statements to reflect actual results,
whether as a result of new information, future events, changes in assumptions,
changes in factors affecting such forward-looking statements or otherwise,
except as required pursuant to applicable securities
laws.