TORONTO, Jan. 20, 2012 /CNW/ - (TSXV: GMN) 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, 2012.
For the period from February 1, 2011 to January 31, 2012, the Company had obtained the regulatory approval to acquire up to an additional 3,294,541 common shares and, as at October 3, 2011, such number of common shares had been repurchased, for a gross amount of CAD2,596,825.40 (an average price of CAD0.7882 per share). The repurchase was conducted by Desjardins Securities Inc..
The Company has applied for regulatory approval to acquire up to an additional 3,129,814 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, 2013. 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 will be made on that basis. The repurchase will be conducted by Desjardins Securities Inc.
As at December 31, 2011, GobiMin had approximately USD62.7 million (CAD63.8 million) in cash and cash equivalent, which represents approximately USD1.00 (CAD1.02) per share based on the total outstanding capital of 62,596,296 shares.
GobiMin owns an indirect equity interest of 70% in Xinjiang Tongyuan Minerals Ltd. for the development of the Sawayaerdun Gold Project in Xinjiang, China. GobiMin also owns a 40%-50% interest each in four other base metal joint ventures in Xinjiang and an 8% equity interest in the Yanxi Copper Deposit. In addition, the Company also holds a 49% equity interest in a silver operation.
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 repurchases mentioned in this press release will be completed in whole or in part.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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For further information:
|Felipe Tan, Chief Executive Officer|
|Tel: (852) 3586-6500|
|Email: [email protected]|