ARG:CC - Amerigo Announces Completion of Normal Course Issuer Bid Over 6% of outstanding shares repurchased over 7 months
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10.75 millionshares retired at an average cost per share of Cdn$1.62
Announcement confirmsAmerigo’s strong commitment of capital returns toshareholders
Amerigo Resources Ltd. (TSX: ARG; ARREF: OTC) (“Amerigo” or the “Company”) is pleased to announce thecompletion of the last purchases of its common shares under a normalcourse issuer bid (“NCIB”) pursuant to which Amerigo purchased forcancellation an aggregate of 10.75 million of its common shares at anaverage cost of Cdn$1.62.
“We are very pleased to report the completion ofthis share repurchase program well ahead of the December 1, 2022termination date. The completion of this NCIB will cancel 6.14% ofAmerigo’s outstanding shares and enhances the impact of our returnof capital strategy for remaining shareholders”, said AuroraDavidson, President and CEO.
“The NCIB is only one of the tools at ourdisposal to return capital to shareholders, and its effectiveness wasevident during recent market volatility. At an average cost ofCdn$1.62 per share, the annualized yield on these equity purchases was7.4% before consideration of the potential return fromperformance/top-up dividends. We believe this first NCIB has been aprudent use of capital for the benefit of Amerigo’s shareholders”,added Ms. Davidson.
Under the NCIB, Amerigo was entitled to purchase up to 10.75million common shares (representing 6.14% of the common sharesoutstanding at the start of the NCIB) over a period of twelve monthscommencing on December 2, 2021 and ending no later than December 1,2022.
Funds inthe aggregate amount of US$13.7 million were used by Amerigo in theNCIB.
Given thatAmerigo has already purchased the maximum number of securitiespermitted by the Toronto Stock Exchange (“TSX”) under a NCIB in a12-month period, it would only be able to commence another NCIB afterDecember 2, 2022.
The common shares were purchased in open market transactions onthe TSX at the prevailing market price at the time of suchtransactions. Pursuant to the rules of the TSX, the total number ofcommon shares that Amerigo was permitted to purchase was subject to adaily purchase limit of 86,625 common shares, representing 25% of theaverage daily trading volume of Amerigo’s common shares on the TSXfor the six-month period preceding the start of the NCIB. Amerigo wasalso able to make one block purchase per calendar week.
One of Amerigo’sprimary objectives is to return capital to its shareholders. Inaddition to the recently completed NCIB, Amerigo is currently paying asustainable quarterly dividend of Cdn$0.03 per share and has announceda “top-up” or performance dividend mechanism, which can be used atany time and in any amount to distribute surplus cash to shareholders.
On completion ofthe NCIB, Amerigo had 166,017,835 issued and outstanding commonshares.
AboutAmerigo
Amerigo Resources Ltd. is an innovative copper producer with along-term relationship with Corporación Nacional del Cobre de Chile(“Codelco”), the world’s largest copper producer.
Amerigo produces copperconcentrate and molybdenum concentrate as a by-product at the MVCoperation in Chile by processing fresh and historic tailings fromCodelco’s El Teniente mine, the world's largest undergroundcopper mine. Tel: (604) 681-2802; Web: www.amerigoresources.com ;Listing: ARG: TSX.
Contact Details
AuroraDavidson, President and CEO
+1 604-697-6207
GrahamFarrell, Investor Relations
+1 416-842-9003
Graham.Farrell@Harbor-Access.com
CompanyWebsite
http://www.amerigoresources.com/
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