FOR IMMEDIATE RELEASE
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RELEASE 09-05
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MINES MANAGEMENT, INC. SHAREHOLDERS
APPROVE STOCKHOLDER RIGHTS PLAN
SPOKANE, Wash., June 19, 2009
� Mines Management, Inc. (NYSE Amex: MGN)(TSX: MGT) is pleased to report
that its Board of Directors has adopted a shareholder rights plan (the
�Rights Plan�), following 71% approval by shareholders at the Company's
annual meeting held on June 18, 2009. In accordance with the terms of the
Rights Plan, the Board of Directors declared a dividend distribution of
one preferred share purchase right (a "Right") on each
outstanding share of the Company�s common stock. In addition, Russell
Babcock was reelected as a director by a vote
of 96%.
Glenn Dobbs,
President of the Company, stated: "The Rights are intended to enable
all of the Company's shareholders to realize the long-term value of their
investment in the Company. The Rights are designed to assure that all of
the Company's shareholders receive fair and equal treatment in the event
of any proposed takeover of the Company. The Rights are not being adopted
in response to any specific takeover threat, but rather are a response to
the general takeover environment and stock market valuations that do not
reflect the Company's long-term value. It is important to note that the
Rights will not prevent a takeover but should encourage anyone seeking to
acquire the Company to negotiate with the Board prior to attempting a
takeover."
The Rights will be
exercisable only if a person or group acquires 20% or more of the
Company's outstanding shares of common stock or commences a tender offer
the consummation of which would result in ownership by a person or group
of 20% or more of the outstanding shares of common stock. Each Right will
entitle shareholders to buy one one-thousandth of a share of a new series
of preferred stock at an exercise price of $12.00.
Subject to certain
exceptions, if a person or group acquires 20% or more of the Company's
outstanding shares of common stock, each Right will entitle its holder
(other than the person or group that acquired 20% or more of the
Company�s outstanding shares of common stock) to purchase, at the Right�s
then-current exercise price, a number of the Company�s shares of common
stock having a market value of twice such price. In addition, if the
Company is acquired in a merger or other business combination transaction
after a person has acquired 20% or more of the Company's outstanding
shares of common stock, each Right will entitle its holder to purchase,
at the Right�s then-current exercise price, a number of the acquiring
company's common shares having a market value of twice such price. The
acquiring person will not be entitled to exercise these Rights.
Prior to the
acquisition by a person or group of beneficial ownership of 20% or more
of the Company's outstanding shares of common stock, the Rights are
redeemable for $0.001 per Right at the option of the Board of Directors
of the Company.
The dividend
distribution will be made on June 18, 2009, payable to shareholders of
record on that date and is not taxable to shareholders. The Rights will
expire on June 18, 2019. The full text of the Rights Plan will be filed
with the Securities and Exchange Commission (the "SEC") on a
Current Report on Form 8-K.
Mines Management,
Inc. is a U.S.-based mineral exploration company in the business of
acquiring, exploring and developing precious and base metals deposits. The
Montanore Silver-Copper Project is the
Company's primary focus, and is located in northwestern
Montana.
Some information
contained in or incorporated by reference into this release may contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as "should," "may,"
"will," "anticipate," "estimate,"
"intend" or "continue," or comparable words or
phrases. In addition, all statements other than statements of historical
facts that address activities that the Company intends, expects or
anticipates will or may occur in the future are forward-looking
statements. Readers are encouraged to read the Company's reports filed
with the SEC, particularly the Company's Quarterly Report on Form 10-Q
for the quarter ended March 31, 2009, and the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 2008, for cautionary
language disclosing why actual results may vary materially from those anticipated
by management.
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