COEUR D'ALENE, ID, June 29 /CNW/ - WGI Heavy Minerals, Incorporated ("WGI") (TSX: WG) announced today that the Toronto Stock Exchange (the "TSX") has accepted its notice of intention to conduct a normal course issuer bid to enable it to purchase up to 2,200,000 of its common shares ("Shares") outstanding, representing approximately 10 percent of WGI's public float of 22,044,314 Shares as at June 18, 2009. The average daily trading volume of WGI for the past six months is 119,623.
Purchases will be affected through the facilities of the Toronto Stock Exchange. WGI believes that due to volatility in financial markets, the Shares may, from time to time be undervalued in the market and would constitute a good investment for the Company. All Shares purchased will be cancelled.
"At the current market price we believe that buying back Shares in this price range is an excellent use of WGI's resources and accretive for our shareholders." said Greg Emerson, WGI's Chief Executive Officer.
Purchases may commence on July 2, 2009, and will terminate on the earlier of July 1, 2010, the date WGI completes its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX, or the date of notice by WGI of termination of the bid.
WGI will make purchases on the open market through the facilities of the TSX in accordance with the rules and policies of the TSX. The price that WGI will pay for any such Shares will be the market price of such Shares on the TSX at the time of acquisition. Units purchased under the bid will be cancelled.
WGI Heavy Minerals, Incorporated is a marketer of industrial grade minerals sourced primarily out of India, producer of industrial-grade garnet out of Idaho and Germany and manufacturer of replacement parts for ultra-high pressure waterjet machine tool systems around the world. The Company's shares are listed on the Toronto Stock Exchange under the symbol WG.
This press release contains forward-looking statements concerning the business, operations, and financial performance and condition of WGI Heavy Minerals, Incorporated. A number of the matters discussed and statements made in the press release contain forward-looking statements reflecting current expectations regarding future assets. When used in this press release, the words "believe", "anticipate", "intend", "estimate", "expect", "project", and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and are naturally subject to risks, uncertainties, and changes in circumstances beyond management's control that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause such differences include but are not limited to: exploration and development risks; risks related to permits and title to property; risks related to foreign countries and regulatory requirements; operating hazards; foreign currency fluctuations; competition; fluctuations in the market price of mineral commodities and transportation costs; uncertainty as to calculations of mineral deposit estimates; uninsured risks; and dependence upon key management personnel and executives. Actual results may differ materially from those expressed here. You should not place undue reliance on such forward-looking statements. The Company is under no obligation to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise.