Amerigo Resources Ltd. (TSX: ARG) has completed the last purchases of its common shares under a normal course issuer bid (NCIB) pursuant to which Amerigo purchased for cancellation an aggregate of 10.75 million of its common shares at an average cost of C$1.62.
“We are very pleased to report the completion of this share repurchase programme well ahead of the December 1, 2022 termination date. The completion of this NCIB will cancel 6.14% of Amerigo’s outstanding shares and enhances the impact of our return of capital strategy for remaining shareholders,” President and CEO, Aurora Davidson, said.
“The NCIB is only one of the tools at our disposal to return capital to shareholders, and its effectiveness was evident during recent market volatility. At an average cost of C$1.62 per share, the annualised yield on these equity purchases was 7.4% before consideration of the potential return from performance/top-up dividends. We believe this first NCIB has been a prudent use of capital for the benefit of Amerigo’s shareholders.”
Under the NCIB, Amerigo was entitled to purchase up to 10.75 million common shares (representing 6.14% of the common shares outstanding at the start of the NCIB) over a period of 12 months commencing on December 2, 2021 and ending no later than December 1, 2022.
Funds in the aggregate amount of US$13.7 million were used by Amerigo in the NCIB.
Given that Amerigo has already purchased the maximum number of securities permitted by the Toronto Stock Exchange (TSX) under a NCIB in a 12-month period, it would only be able to commence another NCIB after December 2, 2022.
One of Amerigo’s primary objectives is to return capital to its shareholders. In addition to the recently completed NCIB, Amerigo is currently paying a sustainable quarterly dividend of C$0.03 per share and has announced a “top-up” or performance dividend mechanism, which can be used at any time and in any amount to distribute surplus cash to shareholders.
On completion of the NCIB, Amerigo had 166,017,835 issued and outstanding common shares.
About Amerigo
Amerigo Resources Ltd is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile, the world’s largest copper producer.
Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world’s largest underground copper mine.
For further information please visit: http://www.amerigoresources.com/
