International Minerals to Repurchase Sharesadmin
International Minerals Corporation has received approval from the Toronto Stock Exchange to commence a normal course issuer bid or share repurchase program to purchase 5.0 million of its common shares, representing 5.24% of IMZ’s public float of 95,366,301 Shares and 5.21% of IMZ’s 96,030,001 issued and outstanding Shares, as at October 8, 2008.
Pursuant to TSX policies, and subject to certain prescribed exceptions, any daily purchases made by IMZ will not exceed 11,872 Shares, which represents 25% of the average daily trading volume on the TSX over the past six months of 47,487 Shares.
Under TSX policies, the Repurchase Program will commence on October 17, 2008 and will end on the earlier of October 16, 2009, or at such time as the Repurchase Program has been completed or the Repurchase Program is terminated at IMZ’s discretion. IMZ has not previously repurchased any of its Shares.
Shares will be purchased on the open market through the facilities of the TSX and the purchase and payment for the acquired Shares will be made by IMZ in accordance with the requirements of the TSX. The price paid by IMZ for any acquired Shares will be the market price at the time of acquisition. All Shares purchased by IMZ under the Repurchase Program will be cancelled. Funding for the Repurchase Program will be from IMZ’s working capital.
In announcing this news, on behalf of the Board of Directors, Stephen J. Kay, President and Chief Executive Officer of IMZ, said: “This Repurchase Program underscores the confidence that the IMZ Board has in the Company’s future outlook and the strength of our balance sheet, with approximately US$60 million in cash and equivalents. We believe that the current market price of the IMZ shares does not fully reflect the underlying value of our business, our 40% interest in Pallancata Silver Mine in Peru and our other development projects in Ecuador. At the current undervalued levels of IMZ shares, the Repurchase Program represents a good investment since a portion of our working capital will be used to achieve an attractive risk-adjusted return on capital. In addition, and importantly, it will improve the near-term liquidity in IMZ’s Shares.” Internet Site: http://www.intlminerals.com