Skip to main content

Sierra Metals to begin normal course issuer bid

Published by
Global Mining Review,


Sierra Metals Inc. (Sierra Metals) has announced that its Board of Directors has approved a share repurchase programme in the form of a normal course issuer bid (the NCIB) in the open market through the facilities of the Toronto Stock Exchange (the TSX) and other Canadian marketplaces / alternative trading systems. Pursuant to the NCIB, the company proposes to repurchase for cancellation up to 1.5 million common shares of the company (the common shares), which represents approximately 0.92% of the issued and outstanding common shares as at 11 December 2018. CIBC Capital Markets (CIBC) will conduct the NCIB on behalf of the company.

In connection with its implementation of the NCIB, Sierra Metals has obtained TSX approval of its notice of intention to make a normal course issuer bid (the notice). The notice provides that the company may purchase up to 1 500 000 common shares through the facilities of the TSX and other Canadian marketplaces / alternative trading systems during the 12 month period commencing on 17 December 2018 and ending on or before 16 December 2019.  Any common share purchases made pursuant to the NCIB will be at the prevailing market price at the time of the transaction, purchased in accordance with the policies of the TSX and conducted by CIBC. In accordance with TSX rules, any daily purchases made under the NCIB are limited to a maximum of 4214 common shares, which represents 25% of the average daily trading volume of 16 858 common shares on the TSX for the six months ended 30 November 2018. However, the company may make one block purchase per calendar week which exceeds the daily repurchase restriction, up to and including the maximum annual aggregate limit of 1 500 000 common shares. Once the block purchase exception has been relied on, the company may not make any further purchases under the NCIB for the remainder of that calendar day.

Decisions regarding purchases will be made by the company and will be based on market conditions, share price, best use of available cash, and other factors. The company is initiating the NCIB with the intention of purchasing up to 1.5 million common shares; however, during the course of the NCIB, the company may determine to amend the number of common shares sought so long as that number does not exceed the limit set out in the policies of the TSX, being 5% of the issued and outstanding common shares. In the event that the company wishes to increase the number of common shares to be purchased, it must amend its notice and reissue a press release, and such amendment would be subject to TSX approval.

Igor Gonzales, President and CEO of Sierra Metals, commented: "Sierra Metals is adopting the NCIB because it believes that its common shares have been trading in a price range which does not adequately reflect the underlying value of such common shares in relation to the company's business and future prospects. Accordingly, the reduction of its share capital that may result from the cancellation of any common shares acquired pursuant to the NCIB will increase the proportionate interest of all remaining shareholders of the company."

Read the article online at: https://www.globalminingreview.com/finance-business/12122018/sierra-metals-to-begin-normal-course-issuer-bid/

You might also like

Dyno Nobel

[Webinar] Breaking new ground in mine blasting

Dyno Nobel will be discussing the latest innovations for making mine blasting more productive and less costly. Register for free today »

 

MCA appoints new Chair

The Minerals Council of Australia (MCA) has today appointed a new Chair to lead the organisation.

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Canadian mining news