Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) announced that it has received approval from the Toronto Stock Exchange (the “TSX”) to proceed with a new normal course issuer bid (the “NCIB”).
- Amerigo Redeploys Share Buybacks for One Year
- 12 Million Shares May be Purchased for Cancellation
- Initial Stage Buyback Levels to Offset Annual Dilution
- Amerigo’s Capital Return Strategy Now Fully Engaged
The NCIB will commence on December 2, 2024, and may continue until December 1, 2025, or at such earlier time as the NCIB is completed or terminated at the Company’s option.
Under the NCIB, Amerigo may purchase for cancellation up to 12,000,000 common shares of the Company (the “Shares”), approximately 10% of Amerigo’s public float as of November 26, 2024. As of November 26, 2024, there were 164,532,844 issued and outstanding Shares of the Company, of which 120,238,264 were forming the public float. All Shares purchased under the NCIB will be purchased in accordance with the requirements of the TSX.
Amerigo’s average daily trading volume (“ADTV”) for the six months ending October 31, 2024, was 249,238 Shares. Therefore, the new NCIB’s daily purchase limit will be 62,309 Shares, 25% of ADTV. However, once per calendar week, Amerigo may make one block purchase that exceeds the daily purchase restriction.
Under the NCIB, Shares may be purchased in open market transactions on the TSX at the prevailing market price at the time of such trade. All Shares purchased under the NCIB will be cancelled.
Under Amerigo’s previous NCIB, which commenced on December 2, 2023, and will expire on December 1, 2024, Amerigo received TSX approval to purchase up to 10,900,000 Shares in open market transactions on the TSX. As of the date of this release, Amerigo had repurchased and cancelled 1,436,754 Shares at a weighted average purchase price of Cdn$1.76 per Share under that earlier NCIB.
Amerigo has a high-yield2 Capital Return Strategy that uses quarterly dividends, performance dividends and share buybacks to consistently return capital to shareholders. Amerigo believes that the opportunistic purchase of Shares under NCIBs is an appropriate use of available funds and is accretive to the value of Amerigo’s Shares. The NCIB is in line with Amerigo’s long-term commitment to creating value for Amerigo’s shareholders.
Amerigo will determine the actual number of shares purchased under the NCIB and the timing of such purchases. There cannot be any assurance as to how many Shares, if any, will ultimately be acquired by the Company.
1 Capital returned to shareholders
The table below summarizes the capital returned to shareholders since Amerigo’s Capital Return Strategy was implemented in October 2021.
2 Dividend yield
The annual yield at the time of this news release is 9.4% based on four quarterly dividends of Cdn$0.03 per share each and the July 8, 2024, Performance Dividend of Cdn$0.04, divided over Amerigo’s November 26, 2024 closing share price of Cdn$1.71.
Amerigo Resources is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.
