The board of directors of Ventana Gold Corp. (TSX: VEN) has adopted a temporary poison pill strategy to block a takeover attempt by Brazilian firm EBX Group.
The plan is designed to secure the board’s right to identify and negotiate alternative paths to increase shareholder value in regards to EBX’s proposed takeover of Ventana common shares.
The board authorized the issuance of one right for each common share as of Tuesday, which will go into effect once the buyer acquires 20% or more of the company’s outstanding shares.
Ventana is a Vancouver-based exploration and development company with rights to 4,590 hectares in northeastern Colombia. The company is focused on two areas – La Bodega and Cal-Vetas, with the former containing gold, silver and copper deposits.
At press time, Ventana’s share price was down $0.03 to $13.48.