Mirasol Resources Ltd has announced its intention to renew its normal course issuer bid (NCIB), subject to TSX Venture Exchange approval.
The NCIB allows Mirasol to purchase for cancellation, from time to time, as it considers advisable, up to 3,500,000 of its issued and outstanding common shares, being approximately 6.5% of the company's currently outstanding common shares and approximately 8.92% of its public float.
The bid will commence on December 15, 2021, and will terminate on December 14, 2022, or such earlier time as it is completed or at the option of the company. Haywood Securities Inc. of Vancouver, British Columbia will conduct the bid on behalf of the company.
Purchases will be made on the open market through the facilities of the exchange. The price that the company will pay for any shares purchased by it will be the prevailing market price of such common shares on the exchange at the time of such purchases.
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The company noted that John Tognetti, a director and the control person of Mirasol, is also a director and the chairman of Haywood Securities. Tognetti abstained from voting as a director of the company on the engagement of Haywood, and shall not dispose of any shares of the company under the bid.
If the company should acquire all of the shares under the NCIB, then, following completion of the bid, Tognetti’s current direct and indirect holdings (13,005,300 shares, or 24.15% of the outstanding common shares) shall be equal to 25.83% of the 50,350,043 common shares outstanding upon completion of the bid.
Management and the directors of Mirasol believe that if the company acquires all of the shares under the NCIB, following completion of the bid there will be a market for shareholders, who do not tender shares to the bid, that is not materially less liquid than the market that existed prior to the bid.
The company also announced the grant of 165,000 restricted share units (RSU) to certain officers and employees of the company under the short-term incentive structure approved by the board. The RSUs shall vest immediately and entitle the holder to one common share for each RSU.
Mirasol is a well-funded exploration company focused in Chile and Argentina. Mirasol has seven partner-funded projects, with Newcrest Mining Ltd (Chile), First Quantum Minerals (TSX:FQM) (Chile), Mine Discovery Fund (Chile), Mineria Activa (Chile), Silver Sands Resources (Argentina), Patagonia Gold (Argentina) and Golden Arrow (Argentina). Mirasol is currently self-funding exploration at Sobek (Chile), Inca Gold (Chile) and Sacha Marcelina (Argentina).
Contact the author at jon.hopkins@proactiveinvestors.com