UME Announces Intention to Make Normal Course Issuer Bid

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[{"type":"text","content":"\n\n\n\nMONTEVIDEO, URUGUAY, December 11 /CNW/ - Uruguay Mineral Exploration Inc\n(TSX VENTURE:UME) (LSE:UGY) ("UME", "the Company"), announces its intention to\nmake a Normal Course Issuer Bid ("NCIB") for its common shares ("Common\nShares") through the facilities of and subject to the approval of the TSX\nVenture Exchange.\n\n\nThe Board would activate the NCIB if adequate stock became available at a\nprice that it regarded as attractive, and in these circumstances the NCIB\nwould be funded from the Company's existing cash resources. Given the strength\nof the Company's financial position, the NCIB would not compromise either the\nfunding of the Company's aggressive exploration programmes or the continuance\nof the Company's dividend policy.\n\n\nIn such circumstances, the Company intends to buy back over a twelve\nmonth period up to the equivalent of C$ 2 million (approximately GBP 973,000\nat the current exchange rate) of its Common Shares at market price. Any such\npurchases would not exceed 5% of the total issued and outstanding shares of\nthe Company. The Company intends to cancel any shares purchased under the\nNCIB.\n\n\nTony Shearer, Chairman of the Board, commented: "The objective of the\nNCIB is to increase shareholder value by acquiring shares at a price that the\nDirectors believe is significantly lower than the Company's fair value. The\nCompany has a strong Balance Sheet with low gearing, substantial cash flow\ngeneration from current production levels, and significant exploration\nprospects. The purchase of shares represents an attractive opportunity and a\nsensible use of a portion of available funds for the benefit of all\nshareholders."\n\n\nSubject to the approval of the TSX-V, the NCIB will begin after the\nrelease of the Second Quarter Results of the 2007/2008 financial year on\nJanuary 9th, 2008 and will end twelve months thereafter on January 8th 2009,\nobserving the purchasing restrictions during "black out" or "close" periods\nand will be performed through WH Ireland Stockbrokers Limited as independent\nbrokers.\n\n\nThe TSX Venture Exchange has not reviewed and does not accept\nresponsibility for the adequacy or accuracy of this news release.\n\n\nEditors' note: Uruguay Mineral Exploration Inc. is a gold producer and\nexploration c...

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