Western Goldfields Announces Share Repurchase Program
November 04 2008 - 3:23PM
PR Newswire (US)
TORONTO, Nov. 4 /PRNewswire-FirstCall/ -- Western Goldfields Inc.
(TSX:WGI, NYSE Alternext:WGW) today announced a share repurchase
program by way of a normal course issuer bid (the "Bid") to
purchase, through the facilities of the Toronto Stock Exchange (the
"TSX") and the NYSE Alternext, certain of its outstanding Common
Shares. Western Goldfields believes that the market price of the
Common Shares may not be reflective of the Company's underlying
value and therefore the Company has decided to undertake the Bid,
which will also increase the proportionate interest of, and be
advantageous for, the remaining shareholders. Western Goldfields
had cash on hand of $45.4 million (including $7.5 million of
restricted cash) as of September 30, 2008. The Company is trading
at a significant discount to net asset value and the Mesquite Mine
is generating net cash flow. As at November 4, 2008, there were
136,761,919 Common Shares issued and outstanding. The number of
Common Shares to be purchased through the facilities of the
exchanges during the period of the Bid from November 7, 2008 to
November 6, 2009 will not exceed 12,838,011 Common Shares, or
approximately 10% of the Company's public float, the maximum number
of shares allowable as defined by the TSX. Purchases will be made
at the market price at the time of the acquisition. Common Shares
purchased pursuant to the Bid will be cancelled. Western Goldfields
has appointed RBC Capital Markets to make the purchases on its
behalf. "Western Goldfields has never been financially stronger. We
view a repurchase of Western Goldfields shares as a truly unique
opportunity for our shareholders. The Mesquite Mine represents a
fully permitted and constructed mine which generates net cash flow
and is located in the United States. The shares are trading at a
significant discount to their net asset value", said Mr. Randall
Oliphant, Chairman, Western Goldfields. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy
the shares in any jurisdiction. Western Goldfields Inc.
----------------------- Western Goldfields Inc. is an independent
gold production and exploration company with a focus on precious
metal mining opportunities in North America. The Mesquite Mine,
currently the Company's sole asset, was brought into production in
January 2008, and the Company's focus is now on achieving the
anticipated rate of production and completing planned improvements
to the property. The Company has 2.8 million ounces in Proven and
Probable Reserves as outlined in more detail in its latest annual
report on Form 10K filed on http://www.sedar.com/. Western
Goldfields common shares trade on the Toronto Stock Exchange under
the symbol WGI, and on the NYSE Alternext under the symbol WGW. For
further details, please visit http://www.westerngoldfields.com/.
Mr. Wes Hanson, P.Geo., Vice President of Mine Development, Western
Goldfields Inc., is the qualified person under National Instrument
43-101 who supervised the preparation of the technical information
contained in this news release. Mr. Hanson is an officer of the
Company. Forward-Looking Information ---------------------------
Certain statements contained in this news release and subsequent
oral statements made by and on behalf of the Company may contain
forward-looking information within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and similar
Canadian legislation. Such forward-looking statements are
identified by words such as "intends", "anticipates", "believes",
"expects", "plans" and "hopes" and include, without limitation,
statements regarding the Company's plan of business operations,
production and cost estimates, potential contractual arrangements,
receipt of working capital, anticipated revenues, and capital and
operating expenditures. These forward-looking statements are based
on the best estimates of management at the time such statements are
made. There can be no assurance that such statements will prove to
be accurate; actual results and future events could differ
materially from such statements. Factors that could cause actual
results to differ materially include, among others, those set forth
in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 2007 filed with the U.S. Securities and Exchange
Commission and the Ontario Securities Commission, under the
caption, "Risk Factors". Most of these factors are outside the
control of the Company. Investors are cautioned not to put undue
reliance on forward-looking statements. Except as otherwise
required by applicable securities statutes or regulation, the
Company disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information,
future events or otherwise. DATASOURCE: Western Goldfields Inc.
CONTACT: please visit http://www.westerngoldfields.com/, or
contact: Raymond Threlkeld, President and CEO, (416) 324-6005, ;
Brian Penny, Chief Financial Officer, (416) 324-6002, ; Hannes
Portmann, Director, Corporate Development and Investor Relations,
(416) 324-6014,
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