TORONTO, Jan. 4 /CNW/ - GobiMin Inc. (the "Company" or "GobiMin") is pleased to announce that,
subject to TSX Venture Exchange approval, it intends to renew its
normal course issuer bid to repurchase some of its common shares on the
TSX Venture Exchange commencing from February 1, 2011.
For the period from February 1, 2010 to January 31, 2011, the Company has obtained the regulatory approval to acquire up to an
additional 3,412,865 common shares and, as at December 21, 2010, such
number of common shares have been all repurchased for a gross amount of
CAD2,816,156.14 (an average price of CAD0.8252 each) under the normal
course issuer bid and the repurchase was conducted by Desjardins
The Company has applied for regulatory approval to acquire up to an
additional 3,294,541 common shares, representing 5% of the common
shares presently outstanding. Purchases are expected to be made in
accordance with applicable regulations over a maximum period of 12
months ending January 31, 2012. The directors of the Company believe
that the repurchase by the Company of its own shares at the prevailing
market price can, in appropriate circumstances, maximize shareholder
value and be in the best interest of the Company and its shareholders.
Any purchases made will be made on that basis. The repurchase will be
conducted by Desjardins Securities Inc.
As at September 30, 2010, GobiMin had approximately USD47 million in
cash and cash equivalent (approximately USD0.69 per share based on the
total issued capital of 67,443,202 shares).
GobiMin owns an equity interest of 70% in Xinjiang Tongyuan Minerals
Ltd. for the development of the Sawayaerdun Gold Project in Xinjiang,
China. GobiMin has four other joint ventures on base metal projects in
Xinjiang and 8% equity interest in Yanxi Copper Deposit.
As announced in its press release of February 9, 2010, GobiMin acquired
an indirect equity interest of 24.49% in Balikun Coal Project in
Xinjiang, China and will participate in its management and operations.
GobiMin and its partner jointly have a controlling interest in the
Project through Xinjiang Ruide Mining Limited. According to a NI 43-101
Mineral Resource estimate prepared by Scott Wilson Ltd. in February
2010, the Balikun Coal Project hosts 38 million tonnes of coal in
Measured Resources and 50 million tonnes in Indicated Resources.
GobiMin is aggressively seeking opportunities to acquire high quality
mining and exploration projects.
Certain statements contained in this press release constitute
forward-looking information. Such statements are based on the current
expectations of management of GobiMin. You are cautioned that such
statements are subject to a multitude of risks and uncertainties that
could cause actual results, future circumstances or events to differ
materially from those projected in the forward-looking information.
The reader should not place undue reliance on the forward-looking
information included in this press release given that (i) actual
results could differ materially from a conclusion, forecast or
projection in the forward-looking information, and (ii) certain
material factors or assumptions were applied in drawing a conclusion or
making a forecast or projection as reflected in the forward-looking
information could prove to be inaccurate. These statements speak only
as of the date they are made, and GobiMin assumes no obligation to
revise such statements as a result of any event, circumstance or
otherwise, except in accordance with law. There is no guarantee that
the transaction as mentioned in this press release will be completed or
that its terms will not be varied.
"Neither TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release."
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SOURCE GobiMin Inc.
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