Dynacor Announces Renewal of Share Buyback Plan
30 April 2020 - 10:00PM
Dynacor Gold Mines Inc. (TSX: DNG) (Dynacor or the
"Corporation"), an international leading ore purchasing
and processing corporation servicing artisanal and small-scale
miners (ASM) announced today that it had received approval from the
Toronto Stock Exchange (the "TSX") respecting the renewal of its
Normal Course Issuer Bid ("NCIB").
Pursuant to the NCIB documentation filed with
the TSX, Dynacor may purchase up to 3,725,828 common shares,
representing approximately 10% of Dynacor’s public float as of
April 14, 2020.
Dynacor is in a financially strong position to
continue to return a portion of its cash to its shareholders
through the NCIB. Additionally, it is reviewing other value-added
opportunities which could further contribute to enhancing
shareholder value.
The Corporation may purchase shares under the
NCIB over a period of twelve months commencing on May 2, 2020 and
ending May 1, 2021, when the bid expires. NCIB purchases are
through the facilities of the TSX and certain Alternative Trading
Systems, and the price for any repurchased shares will be the
prevailing market price at the time of the acquisition. All common
shares purchased by the Corporation will be cancelled. The number
of shares repurchased on any given day may not exceed 11,945 common
shares, which is equal to 25% of the average daily trading volume
on the TSX for the six-month period ending March 31, 2020 except
where purchases are made in accordance with the “block purchase
exception” of the TSX rules. The average daily volume for this
period was calculated in accordance with the rules of the TSX and
is equal to 47,780 common shares.
The NCIB represents a proper utilization of
Dynacor’s available funds as part of the Corporation’s capital
management strategy and is being established to enhance shareholder
value.
The extent to which Dynacor repurchases its
shares and the timing of such repurchases will depend upon market
conditions and other corporate considerations, as determined by
Dynacor's management team. The Corporation will use funds from its
existing cash balances to purchase the shares.The Corporation's
capital deployment strategy is consistent with its priority of
maintaining balance sheet strength while investing in accretive
growth, paying down debt when necessary, and increasing dividends,
all of which contribute to enhanced shareholder returns.
Under the previously approved the NCIB, which
commenced on May 2, 2019, and terminated on May 1, 2020, Dynacor
could repurchase up to 3,273,485, common shares. The actual number
of common shares repurchased under the previous program through the
facilities of the TSX and certain Alternative Trading Systems was
456,733, with a weighted average price of $1.77 per common
share.
COVID-19, Coronavirus:
The government of Peru took measures to contain
the rapid spread of COVID-19, which included all non-essential
activities to be shut down until further notice. As of April 23,
2020, the government declared an extension to May 10, 2020.
Dynacor's ore- purchasing and processing staff are on standby and
awaiting orders to open immediately upon government clearance.
ABOUT DYNACOR
Dynacor is a dividend-paying gold production
corporation headquartered in Montreal, Canada. The corporation is
engaged in production through the processing of ore purchased from
the ASM (artisanal and small-scale mining) industry. At present,
Dynacor produces and explores in Peru, where its management team
has decades of experience and expertise. In 2019, Dynacor produced
80,677 ounces of gold, in line with 2018 (81,314 ounces).
Dynacor produces environmental and socially
responsible gold through its PX IMPACT® gold program. A growing
number of supportive firms from the fine luxury jewelry,
watchmakers and investment sectors are paying a small premium to
our customer and strategic partner for this PX IMPACT® gold. The
premium provides direct investment to develop health and education
projects to our small-scale artisanal miner’s communities.
Dynacor trades on the Toronto Stock Exchange
(DNG) and the OTC in the United States under the symbol
(DNGDF).
FORWARD-LOOKING
INFORMATION
Certain statements in the preceding may
constitute forward-looking statements, which involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of Dynacor, or industry
results, to be materially different from any future result,
performance or achievement expressed or implied by such
forward-looking statements. These statements reflect management’s
current expectations regarding future events and operating
performance as of the date of this news release.
Dynacor (TSX: DNG)
Website: http://www.dynacor.com Twitter:
http://twitter.com/DynacorGold
PDF
available: http://ml.globenewswire.com/Resource/Download/b0612906-5bdb-4eca-bd52-982c3a783ecd
For more information, please contact: Dynacor
Dale Nejmeldeen
Director, Shareholder Relations
Dynacor
T: 514 393-9000 (extension 230)
E: investors@dynacor.com
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