International Minerals to Repurchase Shares
SCOTTSDALE, AZ -- (Marketwire) -- 10/12/11 -- International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) or ('the Company') has received approval from the Toronto Stock Exchange ('TSX') to commence a normal course issuer bid or share repurchase program (the 'Repurchase Program') whereby the Company may purchase 3.0 million of its common shares ('Shares'), representing 2.49% of IMZ's 120,409,876 issued and outstanding Shares, as at October 7, 2011.
Pursuant to TSX policies, and subject to certain prescribed exceptions, any daily purchases made by IMZ will not exceed 10,532 Shares, which represents 25% of the average daily trading volume on the TSX over the past six calendar months of 42,127 Shares.
Under TSX policies, the Repurchase Program will commence on October 17, 2011 and will end on the earlier of October 16, 2012, or at such time as the Repurchase Program has been completed or the Repurchase Program is terminated at IMZ's discretion.
Shares will be purchased on the open market through the facilities of the TSX and other Canadian marketplaces and the purchase and payment for the acquired Shares will be made by IMZ in accordance with the requirements of the TSX. The price paid by IMZ for any acquired Shares will be the market price at the time of acquisition. All Shares purchased by IMZ under the Repurchase Program will be cancelled. Funding for the Repurchase Program will be sourced from IMZ's working capital.
The Repurchase Program is being carried out in compliance with the requirements of the Swiss Stock Exchange ('SIX'). However, Shares will not be repurchased through the facilities of the SIX.
In announcing this news, on behalf of the Board of Directors, Stephen J. Kay, President and Chief Executive Officer of IMZ, said: 'This Repurchase Program reflects the confidence that the IMZ Board has in the Company's future outlook and the strength of our balance sheet, with currently approximately US$98 million in cash and equivalents. We believe that the current market price of the IMZ shares does not fully reflect the underlying value of our business, our 40% interest in the Pallancata Silver Mine and the Inmaculada gold-silver development project (both in Peru) and our other development projects in Nevada and Ecuador. At the current prices of IMZ shares, the Repurchase Program represents a good investment for our shareholders since a relatively small portion of our working capital will be used to achieve an attractive risk-adjusted return on capital. In addition, and importantly, it should improve the near-term liquidity in IMZ's Shares.
Some of the statements contained in this release are 'forward-looking statements' within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding IMZ's planned normal course issuer bid and the expected results thereof. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties that are detailed in IMZ's Renewal Annual Information Form for the year ended June 30, 2011, which was filed on September 28, 2011 and is available on Sedar at www.sedar.com under IMZ's name. IMZ disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The Toronto, Swiss and Frankfurt Stock Exchanges neither approve nor disapprove the information contained in this News Release.
For additional information, contact
Paul Durham
(1) 203-883-8359
Oliver Holzer
(41) 44 853 00 47
Internet Site: http://www.intlminerals.com
E-mail: Email Contact