GobiMin Inc. Announces a Normal Course Issuer Bid


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 Securities Inc..

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.

About GobiMin

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."

To receive GobiMin press releases by email, send a message to info@gobimin.com and specify "GobiMin press releases" on the subject line

SOURCE GobiMin Inc.

For further information:

Felipe Tan, Chief Executive Officer    
Tel: (852) 3586-6500    
Email: felipe@gobimin.com

Organization Profile

GobiMin Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890