EDMONTON, July 30 /CNW/ - (TSX: MRD) ("Melcor" or the "Corporation") announced that a Notice of Intention to make a Normal Course Issuer Bid has been filed with and accepted by the Toronto Stock Exchange to purchase up to 1,560,000 (a maximum of 5%) of its issued and outstanding Common Shares (31,209,530 Common Shares as at July 29, 2008) in a twelve-month period. The Issuer Bid will commence on the 4th day of August, 2008 and will terminate on the earlier of the 3rd day of August, 2009 and the date on which the maximum number of Common Shares are purchased pursuant to the Issuer Bid. Purchases of Common Shares under the Issuer bid will be effected through the facilities of the Toronto Stock Exchange at the market price at the time of purchase. The Common Shares will be purchased for cancellation. The company will be limited to a daily trading volume of 3,994 Common Shares plus one block trade per week.
The Corporation's board of directors and management believe that the purchase by the Corporation of its outstanding Common Shares pursuant to the Normal Course Issuer Bid constitutes a prudent investment of corporate funds and a sound business decision in relation to alternative investment opportunities presently available to the Corporation as, in their opinion, the shares are undervalued when considered against the assets and liabilities of the Corporation and in light of its current and potential earnings. Presently Common Shares of Melcor are listed for trading on the Toronto Stock Exchange.