Business
Proposed Share Buy Back
Proposed Share Buy Back.
About this update from Talisman Metals Plc
[{"type":"text","content":"\n RNS Number : 4579M Ovoca Gold PLC 25 May 2010 \n\n \nOvoca Gold plc (\"Ovoca\" or the \"Company\")\n \nProposed Share Buy Back\n \nThe Board of Ovoca announces that it intends to shortly seek to put in place the necessary authorities to repurchase up to 10 per cent. of the Company's issued share capital by way of on-market share buy backs. The Company does not currently have any authority to repurchase its own shares. \n \nThe Board has examined the merits of share repurchases and has concluded that it would be in the interests of the Company and its Shareholders as a whole to provide for the flexibility to implement on-market share buy backs. The Company has a strong balance sheet and in recent months has completed a significant corporate acquisition, undertaken operational activities across its portfolio of assets and made a number of board and management changes. However, despite such activities, the Company's market capitalisation continues to trade at a substantial discount to the value of its cash and other liquid investments.\n \nHaving the authority to repurchase its shares, will enable the Company to respond to volatile stock market conditions, help stimulate liquidity in the Company's shares and provide Shareholders with the flexibility, but without any compulsion, to realise value in respect of all or some of their shareholdings in a tax efficient method. Share buy backs will only be executed when appropriate financial and stock market conditions prevail and when the Board determines that they are in the interests of the Company and its Shareholders as a whole. The Company will not be able to repurchase shares during a Close Period, as defined by the AIM and ESM Rules\n \nThe ability of the Company to repurchase its shares will be conditional upon shareholder approval of various resolutions; the granting of a waiver by the Irish Takeover Panel of obligations for certain parties under Rule 37 of the Irish Takeover Rules; and the consent of the High Court of Ireland to allow the Company to reduce its share premium account.\n \nA circular containing further details on the proposed buy back authorities and convening an extraordinary general meeting of the Company, to be held on the day of the Company's next annual general meeting in July 2010, will b...