11th Dec 2007 07:00
Uruguay Mineral Exploration Inc (TSX VENTURE:UME) (LSE:UGY) ("UME", "theCompany"), announces its intention to make a Normal Course Issuer Bid ("NCIB")for its common shares ("Common Shares") through the facilities of and subject tothe approval of the TSX Venture Exchange. The Board would activate the NCIB if adequate stock became available at a pricethat it regarded as attractive, and in these circumstances the NCIB would befunded from the Company's existing cash resources. Given the strength of theCompany's financial position, the NCIB would not compromise either the fundingof the Company's aggressive exploration programmes or the continuance of theCompany's dividend policy. In such circumstances, the Company intends to buy back over a twelve monthperiod up to the equivalent of C$ 2 million (approximately GBP 973,000 at thecurrent exchange rate) of its Common Shares at market price. Any such purchaseswould not exceed 5% of the total issued and outstanding shares of the Company.The Company intends to cancel any shares purchased under the NCIB. Tony Shearer, Chairman of the Board, commented: "The objective of the NCIB is toincrease shareholder value by acquiring shares at a price that the Directorsbelieve is significantly lower than the Company's fair value. The Company has astrong Balance Sheet with low gearing, substantial cash flow generation fromcurrent production levels, and significant exploration prospects. The purchaseof shares represents an attractive opportunity and a sensible use of a portionof available funds for the benefit of all shareholders." Subject to the approval of the TSX-V, the NCIB will begin after the release ofthe Second Quarter Results of the 2007/2008 financial year on January 9th, 2008and will end twelve months thereafter on January 8th 2009, observing thepurchasing restrictions during "black out" or "close" periods and will beperformed through WH Ireland Stockbrokers Limited as independent brokers. The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. Editors' note: Uruguay Mineral Exploration Inc. is a gold producer andexploration company focused on identifying and developing mineral opportunitiesin Uruguay. UME is a fully integrated mining company, possessing the skillsnecessary to explore and develop its discoveries. The Company operates the onlyproducing gold mine in Uruguay (San Gregorio), and is also the leading mineralexploration company in Uruguay having assembled an exploration portfolio basedon gold, base metals (copper, nickel, lead, zinc) and diamond prospects. Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) andRBC Capital Markets is its Nominated Adviser and Broker. Contact: Uruguay Mineral Exploration IncTony Shearer, Chairman: +44 20 [email protected] Fowler, CEO: 598 2 [email protected]/Media RelationsShared Value Ltd:Emily Bruning, +44 (0) 20 7321 [email protected] Capital MarketsAndrew Smith, +44 (0) 20 7029 [email protected] Wharry, +44 (0)20 7653 [email protected] Copyright Business Wire 2007Related Shares:
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