Sinclair clearly wants to protect shareholders against some outsiders buying the tremendous resources at the cheap.

I believe Golden Minerals is in a similar position to that of Tanzanian Royalty. The market capitalization of both stocks has been blasted away by short sellers and like TNX Golden Minerals is a leading junior/exploration company in terms of the resources and properties it owns.

To be honest, I have no idea how vulnerable we are in case of a not so friendly takeover attempt, but you can't protect yourself enough in today's crooked markets. Luckily, we have a lot of firm retail investors and Sprott Asset management as shareholders.

DCFM

Tanzanian Royalty Adopts Shareholder Rights Plan

South Surrey, British Columbia CANADA, November 25, 2011 /FSC/ - Tanzanian Royalty Exploration Corp (TNX - TSX, TRX - NYSE: Amex),FSC / Press Release


Tanzanian Royalty Adopts Shareholder Rights Plan

South Surrey, British Columbia CANADA, November 25, 2011 /FSC/ - Tanzanian Royalty Exploration Corp (TNX - TSX, TRX - NYSE: Amex),("Tanzanian Royalty" or the "Company") today announced that its board of directors has approved the adoption of a shareholder rights plan (the "Rights Plan") designed to encourage the fair and equal treatment of shareholders in connection with any take-over bid for the outstanding common shares of the Company.

The Company's board is not aware of any specific take-over bid for Tanzanian Royalty that has been made or is contemplated.

In the event that a take-over bid is made for the Company's common shares in the future, the Rights Plan is intended to provide the Company's board with adequate time to assess a take-over bid, to consider alternatives to a take-over bid and to provide Tanzanian Royalty shareholders with time to assess a take-over bid.

Under the Rights Plan, offers that satisfy certain standards designed to protect shareholder interests will be considered to be "Permitted Bids". Specifically, a Permitted Bid must be made to all Tanzanian Royalty shareholders and must be outstanding for a minimum period of 60 days, among other conditions. If a bid does not qualify as a Permitted Bid, shareholders other than the acquiring person and joint actors will become entitled to exercise the Rights to acquire Tanzanian Royalty common shares at a significant discount to the prevailing market.

The Rights Plan is subject to regulatory approval and Tanzanian Royalty intends to put the Rights Plan before the shareholders for ratification. A copy of the Rights Plan will be filed shortly on SEDAR at www.sedar.com and on EDGAR at www.sec.gov, and can also be obtained from the Company upon written request.

http://www.usetdas.com/TDAS/NewsArticle.aspx?NewsID=18619