EQS-News Amerigo Announces Renewal of Normal Course Issuer Bid
EQS-News: Amerigo Resources Ltd
Up to 11.08 million shares (6.67% of current outstanding) may be retired over a one-year period
Announcement confirms Amerigo’s commitment of capital returns to shareholders
Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) (“Amerigo” or the “Company”) is pleased to announce that the Toronto Stock Exchange (the “TSX”) has accepted Amerigo’s application to implement a new normal course issuer bid (the “NCIB”).
Under the NCIB Amerigo may purchase up to 11,080,000 common shares (representing 6.67% of its 166,032,658 common shares outstanding as at November 18, 2022) over a period of twelve months commencing on December 2, 2022. The NCIB will terminate no later than December 1, 2023.
“We are pleased to renew Amerigo’s ability to buy back shares for cancellation, which is one of our tools to return capital to shareholders,” said Aurora Davidson, Amerigo’s President and CEO. “Amerigo’s last NCIB was fully completed in June 2022 and 10.75 million shares were retired at an average price of Cdn$1.62 per common share, in addition to 7.12 million shares retired under a Substantial Issuer Bid completed in November 2021. Under the right market conditions, up to 11.08 million shares of the Company could also be retired in the next year,” added Ms. Davidson. “This would represent a cumulative reduction of 28.95 million shares (17.43% of current outstanding) over a two-year period. These share buyback programs, in combination with our quarterly dividend yielding 9.6%1, confirms Amerigo’s shareholder capital return commitment.”
In line with Amerigo’s longer-term strategy and commitment to creating value, Amerigo believes that the purchase of common shares pursuant to the NCIB represents an attractive investment opportunity for Amerigo and an appropriate and desirable use of available funds, as well being accretive to the value of Amerigo’s common shares.
Under the NCIB, common shares may be purchased in open market transactions on the TSX at the prevailing market price at the time of such transaction.