VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 5, 2014) - Fancamp Exploration Ltd. ("Fancamp" or the "Company") (FNC.V) is pleased to announce that it has entered into a rights agreement governing certain investor rights and obligations with Lamêlée Iron Ore Ltd. ("Lamêlée") on May 5, 2014 (the "Agreement"). This Agreement is designed to facilitate the long-term success for both Lamêlée and Fancamp with a view to maximize shareholder value.
Subject to termination events such as a change of control, a take-over bid or a change in the majority of the Lamelée directors in favour of directors not supported by the current Lamêlée management, Fancamp will be limited from voting in certain circumstances, including not voting against the election of directors proposed by the then incumbent Lamêlée board of directors.
Nomination Rights
Fancamp will be entitled to nominate one person to the board of directors of Lamêlée so long as Fancamp holds at least 10% of the issued and outstanding Lamêlée shares.
Standstill
Subject to termination events, including those indicated above, Fancamp will be restricted from committing to tender or act in concert with an offeror in a take-over bid of any securities of Lamêlée, assisting in a change of control of Fancamp and soliciting proxies from shareholders of Lamêlée or attempting to influence the voting of such shareholders.
The entering into this Agreement with a related party is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting Protection of Minority Holders in Special Transactions ("Regulation 61-101") in accordance with the terms of said Regulation 61-101.
A copy of the Agreement will be filed with Fancamp's documents on the SEDAR website at www.sedar.com.
Statements made in this news release that are "forward-looking statements" are not historical facts. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those stated herein.
About Fancamp Exploration Ltd (www.fancampexplorationltd.ca)
Fancamp Exploration Ltd. is a Canadian junior mineral exploration company that continues to evolve into a holder of shares in partner companies and royalties on near-term producing mines. These assets are designed to generate free cash flow without further shareholder dilution. Fancamp has an exceptional inventory of resource projects at various stages of development covering more than 1,710 km2 in three provinces. The commodities include hematite-magnetite iron formations, titaniferous magnetite, hematite, nickel/copper/PGM, chromite, Volcanogenic Massive Sulphides and gold.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.