TIMMINS, Ont. - Junior miner Moneta Porcupine Mines Inc. (TSX:ME) has adopted a shareholder rights plan to protect against unwanted takeovers after releasing a "game changing" gold resource estimate for Golden Highway project in Ontario.
Moneta Porcupine said Tuesday that its investors have noted the company's stock price appears undervalued, considering the size of discoveries at its property located in the gold belt near Timmins, Ont.
"We have received comments from retail and institutional investors that the gold resource news we released on Dec. 1, 2011 is a game changer for both Moneta and the entire Timmins Gold Camp," president and CEO Ian Peres said in a statement.
"These comments included numerous references to the fact that Moneta's market capitalization is severely disconnected from the perceived value of our current gold resources. Accordingly, the Moneta board has elected to implement a shareholder rights plan for the protection of all shareholders."
Shareholder rights plans — also known as "poison pills" — set legal limits on the amount of stock that any individual of rival corporation can purchase in a manner the company considers unfair to its investors.
In the December report, Moneta Porcupine reported an indicated mineral resource of 1.07 million ounces and an inferred resource of 2.1 million ounces at Golden Highway.
The company's stock gained a penny to 21.5 cents in early trading Tuesday on the Toronto Stock Exchange. The shares have a 52-week low of 13 cents and a high of 48 cents.