PERTH, Western Australia, June 15, 2016 /CNW/ - Chalice Gold Mines Limited (ASX: CHN) (TSX: CXN) ("Chalice" or "the Company") advises that it intends to undertake a discretionary on-market share buy-back of up to 28,271,080* ordinary shares as part of a capital management plan over the next 12 months.
Following the sale of the Cameron Gold Project to First Mining Finance Corp. on 10 June 2016, Chalice currently has net financial assets (cash plus investments less current liabilities) of approximately A$61 million (or 21.5 cents per share).
The Board of Chalice is committed to actively managing the Company's capital requirements and believes that an on-market buy-back provides the opportunity to repurchase shares at attractive valuations and deliver value to shareholders at this time given the Company's 20 day Volume Weighted Average Price on the ASX prior to today was 16 cents.
The Board will continue to assess the merits of this capital management initiative as market conditions evolve and will keep the market informed of the buy-back's progress in accordance with ASX listing rules. The buyback is therefore dependent upon market conditions, volumes and other relevant factors.
The earliest date the buyback will commence is Monday, 4 July 2016. Chalice will appoint Bell Potter Securities Limited to act on behalf of the Company in relation to the share buy-back process.
An Appendix 3C in relation to the buy-back is attached here.
The on-market buy-back is not being offered or executed through the facilities of the Toronto Stock Exchange. Residents of Canada who wish to participate should contact Mrs Leanne Stevens, Company Secretary by email at lstevens@chalicegold.com. The on-the-market buy-back is proceeding pursuant to the foreign issuer bid exemption found in applicable Canadian securities laws.
*There is no guarantee Chalice will repurchase the full 28,271,080 shares and the Company reserves the right to suspend or terminate the share buyback program at any time and to buyback less than 28,271,080 shares.
TIM GOYDER Managing Director |