TRU Precious Metals Corp. (TSX-V:TRU, OTCQB:TRUIF) recently announced its intention to commence a normal course issuer bid (NCIB) to purchase and cancel up to 9,668,743 company common shares, representing up to 10% of TRU's outstanding public float.
CEO Joel Freudman said the buyback is in response to market conditions, where TRU considers its shares may be undervalued relative to the current market price.
"What we've done is a bit unique relative to other companies in we've actually self-imposed a series of caps on the expenditure for this issuer bid," Freudman told Proactive recently.
"So it's basically some self imposed fiscal discipline, because we do want to manage cash as best as possible in this environment."
He added that the buyback will "clear out" any sellers who need to get out while consolidating ownership amongst the rest of the long term, core shareholder base.
Freudman also noted that the company recently announced additional prospecting results for its Golden Rose Project in Newfoundland, which showed "high grades for copper, as well as good medium grades for gold," which have been found all over the property.
TRU’s CEO also stated that he bought "a lot" of company stock in a financing at $0.05 per share earlier this year and has been buying shares in the open market over the past two months.
Contact Sean at sean@proactiveinvestors.com