3rd May 2019 10:53
LONDON (Alliance News) - Trans-Siberian Gold PLC on Friday announced a share buyback worth 21% of its shares, to be funded by a new loan facility.
The miner wants to buy back 22.9 million shares at 33 pence each, with the stock 3.5% lower at 55p on Friday.
Trans-Siberian is waiting for a loan to finalise from VTB Bank, worth GBP9.4 million, which will be used to fund the buyback.
"The directors believe the effect of the proposed buyback will result in a more ?efficient capital structure for the company, while maintaining a strong balance sheet and continuing with the dividend policy," said Trans-Siberian.
Further shares worth just over 10% of its share capital are to be sold by selling shareholders to its biggest shareholder UFG Group and new investors.
Chief Executive Alexander Dorogov said: "UFG has always been an incredibly supportive shareholder in Trans-Siberian and I know that will continue."
"This transaction creates a great opportunity for Trans-Siberian. It gives us the opportunity to acquire shares at an attractive discount in a carefully managed way so as to avoid market turbulence and provides significant flexibility in the management of our capital base to create value for all our shareholders."
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