- And Share Repurchase Program of Up to 20% of the Outstanding Shares -
HONG KONG, Sept. 18 /CNW/ -- Blue Earth Refineries Inc. ("Blue Earth")
(Pinksheets: BUERF) is pleased to announce today that its Board of Directors
(the "Board") have approved a payment of a special cash distribution in the
amount of US$1.00 per share. The record date for shareholders entitled to
receive the payment will be October 3, 2007. The payment date will be October
8, 2007. The distribution is a return of capital and therefore no withholding
tax will be payable.
In addition, the Board has authorized a share repurchase program, for the
repurchase of up to 20% of its common shares.
To partially finance the costs of the distribution and the share
repurchase program, Blue Earth will use its excess working capital and has
entered into a syndicated unpriced forward derivative contract, which allows
for an initial payment of approximately US$18.4 million and further payments
depending upon the price of cobalt.
The derivative contract may limit Blue Earth from making further cash
distribution in the near future unless prices for cobalt stay constant and the
existing production levels remains the same until the delivery of the cobalt
has occurred to fulfill the forward derivative obligation.
With the volatility and uncertainty of the market price of cobalt, the
Board views this transaction as a way to help control its uncertain future and
create value to its shareholders as of today.
About Blue Earth Refineries Inc.
Based in Hong Kong, Blue Earth Refineries Inc. owns a cobalt ore refinery
Contact: Rene Randall
T: (604) 683 5767
F: (604) 683 3205
For further information:
For further information: Rene Randall of Blue Earth Refineries Inc.,
+1-604-683-5767, fax, +1-604-683-3205, firstname.lastname@example.org