TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) announced that it has purchased 6.1 million shares of the company to date under its normal course issuer bid.
Per the bid announced last year, the metals royalty and gold company may purchase up to 9,548,639 shares of TNR Gold, representing approximately 5% of its outstanding shares as of June 1, 2023.
No more than 2% of the outstanding shares can be purchased in any 30-day period.
Shares purchased will be paid for using TNR Gold’s working capital and will be returned to treasury as authorized and unissued shares.
“We believe that the recent market prices of our shares do not properly reflect the underlying value of the shares, and the ongoing bid allows us to purchase shares in the market to help increase the share value for the company,” TNR Gold executive chairman Kirill Klip commented.
Klip added that TNR Gold’s business model provides “a unique entry point” in the critical metals supply chain and the gold industry, which he said is providing a hedge for this stage of the economic cycle.
"Our portfolio provides a unique combination of assets with exposure to multiple aspects of the mining cycle; the potential of blue-sky discovery at Shotgun Gold Project, and important partnerships with industry leaders Like Ganfeng Lithium, McEwen Mining and Lundin Mining as operators on the projects that have the potential to generate royalty cashflows that will contribute significant value for the company, he said.
TNR Gold is “very pleased” that the Mariana Lithium Project is progressing towards commercial production, with 20,000 tons per year of lithium chloride production expected to start in 2024, Klip highlighted.
“We are looking forward to our first NSR royalty cash flow payments from the Mariana Lithium Project,” he said.
"TNR does not have to contribute any capital for the development of the Mariana Lithium Project, the Los Azules Copper Project or the Josemaria Project. 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.”
TNR Gold said it intends to terminate its normal course issuer bid on or about June 4.