TORONTO, July 15, 2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) ("Karora" or the "Corporation") is pleased to announce it has received approval from the Toronto Stock Exchange (the "TSX") to renew its normal course issuer bid (the "Bid") to purchase up to no more than 8,492,971 of its issued and outstanding common shares (the "Common Shares").
Purchases under the Bid may commence on July 20, 2022. The Bid will expire no later than July 19, 2023. Purchases of common shares will be made through the facilities of the TSX in accordance with its rules. Purchases may also be made through alternative Canadian trading systems. On the date notice was provided to the TSX, the average daily trading volume of the Common Shares for the previous six months ("ADTV") was 984,605 Common Shares. Subject to the TSX's block purchase exception, on any trading day, purchases under the Bid will not exceed 246,151 Common Shares (25% of the ADTV). The price that the Corporation will pay for any Common Shares purchased under the Bid will be the prevailing market price at the time of purchase. Any Common Shares purchased by the Corporation will be cancelled. The Corporation has repurchased 63,000 Common Shares at an average price of $3.19 per Common Share on the TSX during the past twelve months under its prior normal course issuer bid (the "Prior Bid"). Under the Prior Bid, a total of 7,335,151 Common Shares were available for repurchase.
As of July 11, 2022, there were 169,859,423 Common Shares issued and outstanding. The 8,492,971 Common Shares that may be repurchased under the Bid represents 5% of the Common Shares issued and outstanding. Any purchases made under the Bid would, among other factors, reflect the Corporation's belief that its common shares trade at a significant discount to their underlying value. The Board of Directors has determined that the Bid is an effective use of the Corporation's financial resources when its Common Shares trade at a significant discount to their underlying value.
To the knowledge of the Corporation, no director, senior officer or other insider of the Corporation currently intends to sell any common shares under the Bid. However, sales by such persons through the facilities of the TSX may occur if the personal circumstances of any such person change or any such person makes a decision unrelated to these purchases under the Bid. If during the course of the Bid the Corporation becomes aware that such persons intend to sell their Common Shares then the Corporation will not intentionally acquire such Common Shares pursuant to the Bid. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased.
Cormark Securities Ltd. and Haywood Securities Inc. has been engaged to undertake purchases under the Bid.
Karora is focused on increasing gold production to a targeted range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, which is fed at capacity from Karora's underground Beta Hunt mine and Higginsville mines. Karora recently announced the proposed acquisition of the Lakewood Mill in Western Australia which will initially add 1.0 Mtpa capacity. At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. The Company also owns the high grade Spargos Reward project, which came into production in 2021. Karora has a strong Board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora's commitment to reducing emissions across its operations. Karora's common shares trade on the TSX under the symbol KRR and also trade on the OTCQX market under the symbol KRRGF.
This news release contains "forward-looking information" including without limitation statements relating to the price of the Common Shares not adequately reflecting the value of the Company; the number of Common Shares to be repurchased for cancellation under the Bid; the Company's intentions regarding the Bid, and liquidity and capital resources of Karora.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Karora to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Karora 's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Karora disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE Karora Resources Inc.
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