ARG:CC - Amerigo Announces Renewal of Normal Course Issuer Bid
(NewsDirect)
Up to 11.08million shares (6.67% of current outstanding) may be retired over aone-year period
Announcement confirms Amerigo’s commitment of capitalreturns to shareholders
Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) (“Amerigo” or the “Company”) is pleased to announce thatthe Toronto Stock Exchange (the “TSX”) has accepted Amerigo’sapplication to implement a new normal course issuer bid (the“NCIB”).
Under the NCIB Amerigo may purchase up to 11,080,000 commonshares (representing 6.67% of its 166,032,658 common sharesoutstanding as at November 18, 2022) over a period of twelve monthscommencing on December 2, 2022. The NCIB will terminate no later thanDecember 1, 2023.
“We are pleased to renew Amerigo’s ability to buy backshares for cancellation, which is one of our tools to return capitalto shareholders,” said Aurora Davidson, Amerigo’s President andCEO. “Amerigo’s last NCIB was fully completed in June 2022 and10.75 million shares were retired at an average price of Cdn$1.62 percommon share, in addition to 7.12 million shares retired under aSubstantial Issuer Bid completed in November 2021. Under the rightmarket conditions, up to 11.08 million shares of the Company couldalso be retired in the next year,” added Ms. Davidson. “This wouldrepresent a cumulative reduction of 28.95 million shares (17.43% ofcurrent outstanding) over a two-year period. These share buybackprograms, in combination with our quarterly dividend yielding9.6% 1 , confirms Amerigo’s shareholder capital returncommitment.”
Inline with Amerigo’s longer-term strategy and commitment to creatingvalue, Amerigo believes that the purchase of common shares pursuant tothe NCIB represents an attractive investment opportunity for Amerigoand an appropriate and desirable use of available funds, as well beingaccretive to the value of Amerigo’s common shares.
Under the NCIB, commonshares may be purchased in open market transactions on the TSX at theprevailing market price at the time of such transaction.
Pursuant to the rules ofthe TSX, the total number of common shares that Amerigo is permittedto purchase is subject to a daily purchase limit of 62,016 commonshares, which represents 25% of the average daily trading volume of248,067 common shares on the TSX for the six-month period endedOctober 31, 2022. However, Amerigo may make one block purchase percalendar week which exceeds the daily purchase restriction.
All common sharespurchased under the NCIB will be cancelled.
The actual number ofcommon shares purchased pursuant to the NCIB, and the timing of suchpurchases will be determined by Amerigo. There cannot be any assuranceas to how many common shares, if any, will ultimately be acquired bythe Company.
1 The disclosed annual yield of 9.6% is based on four quarterlydividends of Cdn$0.03 per share each, divided over Amerigo’sNovember 29, 2022 share price of Cdn$1.25.
About Amerigo and Minera Valle Central(“MVC”)
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.
Forward-looking information (“forward-looking statements”) isincluded in this news release. These forward-looking statements areidentified by the use of terms such as “anticipate”,“believe”, “could”, “estimate”, “expect”,“intend”, “may”, “plan”, “predict”, “project”,“will”, “would”, and “should” and similar terms andphrases, including references to assumptions. Such statements mayinvolve but are not limited to, Amerigo’s plans, objectives,expectations and intentions, including Amerigo’s objectives andexpectations regarding the number of shares that may be purchased byAmerigo pursuant to the NCIB, Amerigo’s return of capital policy andother comments with respect to strategies, expectations, plannedoperations or future actions.
These forward-looking statements involve known andunknown risks, uncertainties and other factors that may cause actualresults or events to differ materially from those anticipated in suchstatements. Inherent in forward-looking statements are risks anduncertainties beyond Amerigo’s ability to predict or control,including risks that may affect Amerigo’s operating or capitalplans; risks generally encountered in the permitting and developmentof mineral projects such as unusual or unexpected geologicalformations, negotiations with government and other third parties,unanticipated metallurgical difficulties, delays associated withpermits, approvals and permit appeals, ground control problems,adverse weather conditions, process upsets and equipment malfunctions;risks associated with labour disturbances and availability of skilledlabour and management; risks related to the potential impact of globalor national health concerns, including COVID-19, and the inability ofemployees to access sufficient healthcare; government or regulatoryactions or inactions; fluctuations in the market prices of Amerigo’sprincipal commodities, which are cyclical and subject to substantialprice fluctuations; risks created through competition for miningprojects and properties; risks associated with lack of access tomarkets; risks associated with availability of and Amerigo’s abilityto obtain both tailings from Codelco’s Division El Teniente’scurrent production and historic tailings from tailings deposits; riskswith respect to the ability of Amerigo to draw down funds from linesof credit and the availability of and ability of Amerigo to obtainadequate funding on reasonable terms for expansions and acquisitions;mine plan estimates; risks posed by fluctuations in exchange rates andinterest rates, as well as general economic conditions; risksassociated with environmental compliance and changes in environmentallegislation and regulation; risks associated with Amerigo’sdependence on third parties for the provision of critical services;risks associated with non-performance by contractual counterparties;title risks; social and political risks associated with operations inforeign countries; risks of changes in laws affecting Amerigo’soperations or their interpretation, including foreign exchangecontrols; and risks associated with tax reassessments and legalproceedings. Notwithstanding the efforts of Amerigo and MVC, there canbe no guarantee that Amerigo’s or MVC’s staff will not contractCOVID-19 or that Amerigo’s and MVC’s measures to protect stafffrom COVID-19 will be effective. Many of these risks and uncertaintiesapply not only to Amerigo and its operations, but also to Codelco andits operations. Codelco’s ongoing mining operations provide asignificant portion of the materials Amerigo processes and itsresulting metals production, therefore these risks and uncertaintiesmay also affect their operations and in turn have a material effect onAmerigo.
Actualresults and developments are likely to differ, and may differmaterially, from those expressed or implied by the forward-lookingstatements contained in this news release. Such statements are basedon several assumptions which may prove to be incorrect, including, butnot limited to, assumptions about:
- general business and economic conditions;
- interest rates;
- changes in commodity and powerprices;
- acts of foreign governmentsand the outcome of legal proceedings;
- the supply and demand for, deliveries of, and the level andvolatility of prices of copper and other commodities and products usedin Amerigo’s operations;
- the ongoing supply of material forprocessing from Codelco’s current mining operations;
- theability of Amerigo to profitably extract and process material from theCauquenes tailings deposit;
- the timing of the receipt of andretention of permits and other regulatory and governmentalapprovals;
- Amerigo’s costs of production and its productionand productivity levels, as well as those of Amerigo’scompetitors;
- changes in credit market conditions andconditions in financial markets generally;
- Amerigo’s abilityto procure equipment and operating supplies in sufficient quantitiesand on a timely basis;
- the availability of qualified employeesand contractors for Amerigo’s operations;
- Amerigo’sability to attract and retain skilled staff;
- the satisfactorynegotiation of collective agreements with unionizedemployees;
- the impact of changes in foreign exchange rates andcapital repatriation on Amerigo’s costs and results;
- costsof closure of various operations;
- marketcompetition;
- tax benefits and tax rates;
- the outcomeof Amerigo’s copper concentrate sales and treatment and refiningcharge negotiations;
- the resolution of environmental and otherproceedings or disputes;
- the future supply of reasonablypriced power;
- rainfall in the vicinity of MVC continuing totrend towards normal levels;
- average recoveries for freshtailings and Cauquenes tailings;
- Amerigo’s ability toobtain, comply with and renew permits and licenses in a timely manner;and
- Amerigo’s ongoing relations with its employees andentities with which it does business.
Future production levelsand cost estimates assume there are no adverse mining or other eventswhich significantly affect budgeted production levels. AlthoughAmerigo believes that these assumptions were reasonable when made,because these assumptions are inherently subject to significantuncertainties and contingencies which are difficult or impossible topredict and are beyond Amerigo’s control, Amerigo cannot assure thatit will achieve or accomplish the expectations, beliefs or projectionsdescribed in the forward-looking statements.
Amerigo cautions youthat the foregoing list of important factors and assumptions is notexhaustive. Other events or circumstances could cause Amerigo’sactual results to differ materially from those estimated or projectedand expressed in, or implied by, its forward-looking statements. Youshould also carefully consider the matters discussed under RiskFactors in Amerigo’s Annual Information Form. The forward-lookingstatements contained herein speak only as of the date of this newsrelease and except as required by law, Amerigo undertakes noobligation to update publicly or otherwise revise any forward-lookingstatements or the foregoing list of factors, whether as a result ofnew information or future events or otherwise.
ContactDetails
Aurora Davidson, President and CEO
+1604-697-6207
GrahamFarrell
+1 416-842-9003
Company Website
http://www.amerigoresources.com/
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