Copper Canyon Adopts Shareholder Rights Plan

 

Cranbrook, B.C., 24 April, 2007: Copper Canyon Resources Ltd. (TSX-V:CPY) ("Copper Canyon" or the "Company") is pleased to announce that the Board of Directors implemented on April 20, 2007 the Company's shareholder rights plan dated effective April 20, 2007 (the "Rights Plan") entered into by Copper Canyon and CIBC Mellon Trust Company, as rights agent.  The Rights Plan is designed to encourage the fair and equal treatment of shareholders in connection with any take-over bid for the outstanding securities of the Company.

The Rights Plan is intended to provide the shareholders of the Company with adequate time to properly assess the merits of a take-over bid without undue pressure and to allow competing bids to emerge.  The Rights Plan is further designed to give the Board of Directors time to consider alternatives to a take-over bid as a means of maximizing shareholder value.  Copper Canyon's Board of Directors is not currently aware of any pending or threatened take-over bid for the Company.  The Rights Plan is similar to plans adopted by other Canadian companies and ratified by their shareholders.

Under the terms of the Rights Plan, one right (a "Right") will be issued by Copper Canyon in respect of each outstanding Copper Canyon common share at the close of business as of April 20, 2007 and in respect of each Copper Canyon common share issued thereafter (subject to the terms of the Rights Plan).  The Rights issued under the Rights Plan become exercisable only if a person 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 Copper Canyon's Board of Directors.

Should such an acquisition occur, Rights holders (other than the acquiring person or related persons) can purchase common shares of the Company at a substantial discount to the prevailing market price (as defined in the Rights Plan) at the time the Rights become exercisable.

"Permitted bids" under the Rights Plan must be made to all holders of Copper Canyon's common shares and must be open for acceptance for a minimum of 45 days.  If at the end of 45 days at least 50% of the outstanding common shares other than those owned by the offer and certain related parties have been tendered and not withdrawn, the bidder may take up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender to the bid.

Although implemented and effective as of April 20, 2007, the Rights Plan is subject to regulatory approval. The Rights Plan was first approved pursuant to the plan of arrangement between Eagle Plains Resources Ltd. ("Eagle Plains") and Copper Canyon at a meeting of Eagle Plains' shareholders held on May 15, 2006.  The plan of arrangement deemed the shareholders of Copper Canyon to have; (i) approved the Rights Plan substantially in the form adopted by Eagle Plains in connection with its 2004 annual and special shareholder meeting; and (ii) authorized the directors of Copper Canyon to implement the Agreement at such time and under such circumstances as the directors of the Company shall determine.  In accordance with the terms of the Rights Plan, it will be presented for confirmation by Copper Canyon's shareholders at the Company's annual meeting of shareholders scheduled for June 13, 2007.  If not ratified, the Rights Plan and all of the Rights outstanding at the time will terminate.

A copy of the Rights Plan will be made available for viewing on SEDAR at www.sedar.com, and can also be obtained from Copper Canyon upon a written request.

Copper Canyon was created by way of a Plan of Arrangement on June 9, 2006.  Shareholders of Eagle Plains approved the plan to reorganize the Company's mineral property assets in an effort to maximize shareholder value.  Under the terms of the arrangement, three of Eagle Plains’ projects; Copper Canyon, Severance and Abo (Harrison) Gold, were transferred into Copper Canyon one a one-for-one share basis.

On behalf of the Board of Directors

Signed

“Tim J. Termuende”

President and CEO

 

For further information, please contact Mike Labach at

1 866 HUNT ORE (486 8673)

Email: mgl@copcanyon.com or visit our website at http://www.copcanyon.com

 

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this 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.