TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) is repurchasing shares to enhance shareholder value, highlighting strategic partnerships and royalty cash flow potential from projects like the Mariana lithium project operated by Ganfeng Lithium.
The firm repurchased a total of 5,616,000 shares under its normal course issuer bid.
The bid, initiated on June 1, 2023, allows the company to repurchase up to 9,548,639 common shares, representing about 5% of its outstanding shares, with a limit of 2% in any 30-day period.
These acquisitions are financed through the company's working capital, and all repurchased shares will be returned to treasury as authorized and unissued shares.
Executive chairman Kirill Klip emphasized TNR Gold's focus on building a green energy metals royalty and gold company, highlighting its unique position in critical material supply chains.
"We are building the green energy metals royalty and gold company,” Klip told investors in a release.
"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.”
The company's portfolio offers a distinctive blend of assets spanning various stages of the mining process. It includes promising exploration opportunities such as the Shotgun Gold Project, alongside significant partnerships with key industry players like Ganfeng Lithium, McEwen Mining, and Lundin Mining. These collaborations, with renowned operators, hold the potential to yield royalty cash flows, enhancing value for shareholders.
TNR Gold repaid its investment loan in full in 2023, and the company now has no debt.
“We believe that the recent market prices of our shares do not properly reflect the underlying value of the shares and the normal course issuer bid allows us to purchase shares in the market to help increase the shareholder value for the shareholders,” Klip said.
The Mariana Lithium Project is heading towards expected commercial production in 2024, with an estimated annual output of 20,000 tons of lithium chloride.
TNR Gold's business model ensures it does not need to contribute capital to projects.