TORONTO (miningweekly.com) – Toronto-based North American Palladium (NAP) has adopted a shareholder rights plan, subject to approval by shareholders at the firm's annual meeting in May.

“The rights plan is similar to plans adopted by other Canadian companies, and has been adopted to ensure the fair treatment of shareholders in the event of any take-over bid for NAP's common shares,” the firm said.

The plan gives directors and shareholders time to consider an unsolicited takeover bid, and to look for alternative transactions.

“The rights plan in no way prohibits a change of control of the company in a transaction that is procedurally fair to its shareholders,” the company said.

NAP spokesperson Camilla Bartosiewicz said the plan was not adopted a response to any expected offer, but that it came up in the normal course of business ahead of the annual shareholders meeting.

"It is not in response to any anticipated or proposed acquisition and we are not aware of any bids or pending bids," she said in an interview.

NAP operates the Lac des Iles palladium mine in Ontario and the Sleeping Giant gold mine in Quebec.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.