TORONTO, July 15,
2022 /CNW/ - Karora Resources Inc. (TSX: KRR)
(OTCQX: KRRGF) ("Karora" or the "Corporation") is pleased to
announce it has received approval from the Toronto Stock Exchange
(the "TSX") to renew its normal course issuer bid (the "Bid") to
purchase up to no more than 8,492,971 of its issued and
outstanding common shares (the "Common Shares").
Purchases under the Bid may commence on July 20, 2022. The Bid will expire no later than
July 19, 2023. Purchases of common
shares will be made through the facilities of the TSX in accordance
with its rules. Purchases may also be made through alternative
Canadian trading systems. On the date notice was provided to the
TSX, the average daily trading volume of the Common Shares for the
previous six months ("ADTV") was 984,605 Common Shares. Subject to
the TSX's block purchase exception, on any trading day, purchases
under the Bid will not exceed 246,151 Common Shares (25% of the
ADTV). The price that the Corporation will pay for any Common
Shares purchased under the Bid will be the prevailing market price
at the time of purchase. Any Common Shares purchased by the
Corporation will be cancelled. The Corporation has repurchased
63,000 Common Shares at an average price of $3.19 per Common Share on the TSX during the past
twelve months under its prior normal course issuer bid (the "Prior
Bid"). Under the Prior Bid, a total of 7,335,151 Common Shares were
available for repurchase.
As of July 11, 2022, there were
169,859,423 Common Shares issued and outstanding. The
8,492,971 Common Shares that may be repurchased under the Bid
represents 5% of the Common Shares issued and outstanding. Any
purchases made under the Bid would, among other factors, reflect
the Corporation's belief that its common shares trade at a
significant discount to their underlying value. The Board of
Directors has determined that the Bid is an effective use of the
Corporation's financial resources when its Common Shares trade at a
significant discount to their underlying value.
To the knowledge of the Corporation, no director, senior officer
or other insider of the Corporation currently intends to sell any
common shares under the Bid. However, sales by such persons through
the facilities of the TSX may occur if the personal circumstances
of any such person change or any such person makes a decision
unrelated to these purchases under the Bid. If during the course of
the Bid the Corporation becomes aware that such persons intend to
sell their Common Shares then the Corporation will not
intentionally acquire such Common Shares pursuant to the Bid. The
benefits to any such person whose shares are purchased would be the
same as the benefits available to all other holders whose shares
are purchased.
Cormark Securities Ltd. and Haywood Securities Inc. has been
engaged to undertake purchases under the Bid.
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt
Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment
facility is a low-cost 1.6 Mtpa processing plant, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. Karora recently announced the proposed acquisition of the
Lakewood Mill in Western Australia
which will initially add 1.0 Mtpa capacity. At Beta Hunt, a robust
gold Mineral Resource and Reserve are hosted in multiple gold
shears, with gold intersections along a 4 km strike length
remaining open in multiple directions. HGO has a substantial
Mineral gold Resource and Reserve and prospective land package
totaling approximately 1,900 square kilometers. The Company also
owns the high grade Spargos Reward project, which came into
production in 2021. Karora has a strong Board and management team
focused on delivering shareholder value and responsible mining, as
demonstrated by Karora's commitment to reducing emissions across
its operations. Karora's common shares trade on the TSX under the
symbol KRR and also trade on the OTCQX market under the symbol
KRRGF.
Cautionary Statement Concerning
Forward-Looking Statements
This news release contains "forward-looking information"
including without limitation statements relating to the price of
the Common Shares not adequately reflecting the value of the
Company; the number of Common Shares to be repurchased for
cancellation under the Bid; the Company's intentions regarding the
Bid, and liquidity and capital resources of Karora.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
www.karoraresources.com
SOURCE Karora Resources Inc.