Centerra Gold Announces Intention to make a Normal Course Issuer Bid
04 October 2022 - 9:05PM
Centerra Gold Inc. (TSX: CG) (NYSE: CGAU) (“Centerra” or the
“Company”) is pleased to announce that, subject to the approval of
the Toronto Stock Exchange (“TSX”), it intends to proceed with a
normal course issuer bid (“NCIB”) to purchase for cancellation up
to an aggregate of 15,610,813 common shares in the capital of the
Company (“Common Shares”), representing approximately 7.1% of
Centerra’s total issued and outstanding Common Shares, or 10% of
the public float. As of September 30, 2022, Centerra had
220,086,775 issued and outstanding Common Shares.
Centerra believes that the Common Shares have
been trading in a price range which does not adequately reflect the
value of such shares in relation to Centerra’s assets and its
future prospects. As a result, Centerra believes that the NCIB will
provide the Company with a flexible tool to deploy a portion of its
cash balance to, depending upon future price movements and other
factors, repurchase Common Shares while preserving its strong
balance sheet position.
Centerra will file a notice of intention to make
a NCIB with the TSX and, subject to the approval of the TSX,
Centerra may purchase Common Shares under the NCIB over a
twelve-month period. Under the NCIB, daily purchases would be
limited to 226,201 Common Shares, other than purchases made under
block purchase exemptions. Once the NCIB is commenced, the exact
timing and amount of any purchases will depend on market conditions
and other factors. Centerra will not be obligated to acquire any
Common Shares and may suspend or discontinue purchases under the
NCIB at any time. Any purchases made under the NCIB will be made at
market price at the time of purchase through the facilities of the
TSX and/or alternative Canadian trading systems in accordance with
applicable securities laws and stock exchange rules.
Centerra intends to establish an automatic share
purchase plan in connection with its NCIB to facilitate the
purchase of Common Shares during times when Centerra would
ordinarily not be permitted to purchase Common Shares due to
regulatory restrictions or self-imposed black-out periods. Before
entering a black-out period, Centerra may, but is not required to,
instruct the broker to make purchases under the NCIB based on
parameters set by Centerra in accordance with the automatic share
purchase plan, applicable securities laws and stock exchange
rules.
Cautionary Note Regarding Forward-Looking
Information
Information contained in this document which are
not statements of historical facts may be “forward looking
information” for the purposes of Canadian securities laws and
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking information
involves risks, uncertainties and other factors that could cause
actual results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward looking
information. The words “expect”, “contemplate”, “may”, “will”,
“intend” and similar expressions identify forward-looking
information. In particular, such forward-looking statements
include, but are not limited to, statements relating to the TSX’s
approval of the NCIB, Centerra’s intention to commence the NCIB and
the timing, methods and quantity of any purchases of Common Shares
under the NCIB, the availability of cash for repurchases of Common
Shares under the NCIB, compliance with applicable laws and
regulations pertaining to the NCIB, Centerra’s perceptions of
historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances.
Forward-looking information is necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by Centerra, are inherently subject to significant
political, business, technical, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking information. Factors and assumptions that could
cause actual results or events to differ materially from current
expectations include the risk factors set forth in the section
titled “Risk Factors” in the Company’s most recently filed Annual
Information Form, which is available on SEDAR at www.sedar.com and
EDGAR at www.sec.gov/edgar. There can be no assurances that
forward-looking information and statements will prove to be
accurate, as many factors and future events, both known and unknown
could cause actual results, performance or achievements to vary or
differ materially from the results, performance or achievements
that are or may be expressed or implied by the forward-looking
statements contained or referred to herein. Accordingly, all such
factors should be considered carefully when making decisions with
respect to Centerra, and prospective investors should not place
undue reliance on forward looking information. Forward-looking
information contained herein is given as of the date of this press
release. Centerra assumes no obligation to update or revise
forward-looking information to reflect changes in assumptions,
changes in circumstances or any other events affecting such
forward-looking information, except as required by applicable
law.
About Centerra Gold
Centerra Gold Inc. is a Canadian-based gold
mining company focused on operating, developing, exploring and
acquiring gold and copper properties in North America, Türkiye, and
other markets worldwide. Centerra operates two mines: the Mount
Milligan Mine in British Columbia, Canada, and the Öksüt Mine in
Türkiye. Centerra also owns the Goldfield District Project in
Nevada, United States, the Kemess Underground Project in British
Columbia, Canada, and owns and operates the Molybdenum Business
Unit in the United States and Canada. Centerra’s shares trade on
the TSX under the symbol CG and on the NYSE under the symbol CGAU.
Centerra is based in Toronto, Ontario, Canada.
Additional information on Centerra is
available on the Company’s web site at
www.centerragold.com and at SEDAR
at www.sedar.com and EDGAR
at www.sec.gov/edgar.
For more information: Toby Caron
Treasurer and Director, Investor Relations (416) 204-1694
toby.caron@centerragold.com
Shae Frosst Manager, Investor Relations (416)
204-2159 shae.frosst@centerragold.com
A PDF accompanying this announcement is available
at http://ml.globenewswire.com/Resource/Download/027a23f1-baa4-44dd-afcd-667ef32f9dfb
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