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September 24, 2007
TSX Venture
Exchange Tier 1
Trading Symbol: OK
Orko Silver Adopts Shareholder Rights
Plan
VANCOUVER, British
Columbia
- Orko Silver Corp. (TSX.V - OK)
wishes to announce that its Board of Directors has approved the adoption
of a shareholder rights plan (the ?Rights Plan?).
The Rights Plan is
designed to ensure the fair and equal treatment of shareholders in
connection with any take-over bid for outstanding common shares of Orko
Silver. The Rights Plan seeks
to provide shareholders with adequate time to properly assess a take-over
bid without undue pressure.
It also provides the Board with adequate time to fully assess an
unsolicited take-over bid, to allow competing bids to emerge, and, if
applicable, to explore other alternatives to the take-over bid to maximize
shareholder value.
The Rights Plan is not
intended to prevent or deter take-over bids that offer fair treatment and
value to shareholders, but is designed to encourage offers that represent
fair value to all shareholders.
The Rights Plan is
similar to rights plans adopted by other Canadian corporations. Under the
terms of the Rights Plan, one right will be issued by Orko Silver for each
outstanding Orko Silver common share at the close of business today and
for each Orko Silver common share issued in future (subject to the terms
of the Rights Plan). The rights issued under the Rights Plan become
exercisable only if a person or entity acquires or announces its intention
to acquire 20% or more of the common shares of the Company without
complying with the "Permitted Bid" provisions of the Rights Plan or
without the approval of Orko Silver Board of Directors.
Permitted Bids must be
made to all holders of Orko Silver?s common shares by way of a take-over
bid circular prepared in compliance with applicable securities laws and,
among other things, must be open for acceptance for a minimum of 60 days.
If at the end of 60 days at least 50% of the outstanding common shares
other than those owned by the offeror and certain related parties have
been tendered and not withdrawn, the bidder may take-up and pay for the
shares but must extend the bid for a further 10 days to allow other
shareholders to tender to the bid.
If a take-over bid does
not meet the Permitted Bid requirements of the Rights Plan, the rights
will entitle shareholders, excluding the shareholder or shareholders
making the take-over bid, to purchase additional common shares of the
Company at a substantial discount to the market price of the common shares
at that time.
The Rights Plan became
effective as of September 24, 2007 but must be ratified by shareholders
within six months in order to continue to be effective. The Rights Plan is
also subject to approval by the TSX Venture Exchange. A copy of the Rights
Plan will be available at www.sedar.com
Orko Silver is not
adopting a Rights Plan in response to any proposal to acquire control of
the Company.
A printer friendly PDF
version of this News Release can be found
at:
http://www.investorhub.ca/orkonews.pdf
About
Orko Silver Corp.
Orko Silver
Corp. is a professional exploration company with an increasing silver
resource. Orko Silver's principal project, La Preciosa, located near the
city of Durango, Mexico, is
an advanced silver and gold project. The Company is currently drilling at
La Preciosa using 2 rigs working 24 hours a day, 7 days a week. The
deposit remains open in all directions and to depth. Two additional projects include the Santa Monica east of La Preciosa and the San Juan west of La
Preciosa. All are undergoing
exploration.
ON
BEHALF OF THE BOARD OF DIRECTORS
Gary Cope
President
For further information, contact Orko Silver Corp. at (604)
684-4691 or
Via email at info@orkosilver.com or visit our
website on line at www.orkosilver.com
The
TSX Venture Exchange has not reviewed and does not accept responsibility
for this News Release. This
News Release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Orko relies upon litigation
protection for forward-looking statements.
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