TORONTO, Dec. 06, 2016 (GLOBE NEWSWIRE) -- Xtra-Gold Resources Corp. (“Xtra- Gold” or the “Company”) (TSX:XTG) (OTCQB:XTGRF), is pleased to announce today that the Toronto Stock Exchange (“TSX”) has accepted a noticed filed by the Company of its intention to renew its prior normal course issuer bid for a further one year period. The Company intends to proceed with a normal course issuer bid to purchase up to 4,000,000 common shares of the Company (the “2016 Bid”).
The Company is commencing the 2016 Bid because it believes that the current market price of its common shares may not fully reflect the underlying value of the Company's business and its future business prospects. The Company believes that the purchase of common shares for cancellation is in the best interests of the Company’s shareholders by increasing the respective proportionate shareholdings and therefore increasing the respective equity interest in the Company for all remaining shareholders.
As of November 30, 2016 the Company has 48,464,917 common shares issued and outstanding. The 4,000,000 common shares that may be purchased by the Company under the 2016 Bid represent approximately 10% of the public float (46,011,062 as of November 30, 2016) of the Company. The 2016 Bid will commence on December 8, 2016 and will terminate on December 7, 2017 or at such earlier date in the event that the number of shares sought in the 2016 Bid has been repurchased. The Company reserves the right to terminate the 2016 Bid earlier if it feels that it is appropriate to do so.
All shares will be purchased on the open market through the facilities of the TSX, and payment for the common shares will be in accordance with TSX policies. The price paid for the common shares will be the market price at the time of purchase. Purchasing may be suspended at any time, and no purchases will be made other than by means of open market transactions during the term of the 2016 Bid.
The maximum number of common shares that may be purchased on a daily basis is 5,327 common shares representing 25% of the average daily trading volume for the last six calendar months, except where purchases are made in accordance with "block purchases" exemptions under applicable TSX policies. The common shares purchased by the Company will be cancelled.
The Company has engaged Haywood Securities Inc. to act as broker through which the 2016 Bid will be conducted.
Previous purchases were made by the Company under a prior normal course issuer bid (the “2015 Bid”), the results of which are noted hereunder.
Results of 2015 Bid
Xtra-Gold acquired 372,500 common shares at an average price of $0.23 per share under the 2015 Bid, which commenced on November 3, 2015 and expired on November 2, 2016
About Xtra-Gold Resources Corp.
Xtra-Gold is a gold exploration company with a substantial land position in the Kibi Gold Belt, in Ghana West Africa.
Source:Xtra-Gold Resources Corp.