TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) said it has repurchased over five million shares of the company, signaling confidence in its royalty business model.
As part of a normal course issuer bid, which is set to end by June 2024, the company has repurchased 5,056,000 shares.
The ongoing bid, announced on June 1, 2023, allows the company to purchase up to 9,548,639 common shares, representing 5% of the outstanding shares, with a maximum of 2% within any 30-day period.
Kirill Klip, Executive Chairman of TNR Gold, highlighted the company's focus on building a green energy metals royalty and gold enterprise.
"Our business model provides a unique entry point in the creation of supply chains for critical materials like energy metals that are powering the energy ‘rEVolution’, and the gold industry that is providing a hedge for this stage of the economic cycle,” Klip said.
TNR’s portfolio provides a unique combination of assets with exposure to multiple aspects of the mining cycle, Klip noted, including the potential of blue-sky discovery at the Shotgun gold project and important partnerships with industry leaders like Ganfeng Lithium, McEwen Mining and Lundin Mining.
The firm has no debt on its balance sheet, Klip added. The share repurchase initiative reflects the company's belief that current market prices do not reflect the true value of its shares. The move aims to enhance shareholder value.
“TNR does not have to contribute any capital for the development of the Mariana Lithium Project, Los Azules Copper Project and Josemaria Project,” Klip said. “The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
The Mariana lithium project is expected to start commercial production in 2024, according to Ganfeng Lithium, the project's operator. TNR does not have to contribute any capital to the development of the project.