TORONTO, June 4, 2020 /CNW/ - Geodrill Limited ("Geodrill"
or the "Company") (TSX: GEO), a leading West African based drilling
company, announced today that the Toronto Stock Exchange ("TSX")
has accepted its notice of intention to renew its normal course
issuer bid (the "New NCIB Program") to purchase outstanding
ordinary shares of the Company (the "Ordinary Shares") on the open
market in accordance with the rules of the TSX. Any such purchases
will occur from time to time and in aggregate will be up to
2,223,665 Ordinary Shares (being approximately 5% of the issued and
outstanding Ordinary Shares of the Company) over a 12-month period
commencing on June 7, 2020 and
terminating on June 6, 2021 (the "New
NCIB Program"). The New NCIB Program was approved by the
shareholders of the Company on May 13,
2020. Pursuant to a previous notice of intention to conduct
a normal course issuer bid, under which Company
sought and received approval from the TSX to purchase up to
2,194,225 Ordinary Shares for the period of June 7, 2019 to June 6,
2020 (the "Current NCIB Program"), the Company has
repurchased, as of June 4, 2020, a
total of 23,500 Ordinary Shares on the open market at an average
purchase price of $1.57 per Ordinary
Share. As of June 4, 2020,
Geodrill had 44,548,300 Ordinary Shares issued and outstanding and
13,205,000 Ordinary Shares in the public float.
Any repurchases under the New NCIB Program will be made in
Canada through the facilities of
the TSX or alternative Canadian trading systems or by such other
means permitted by the TSX. Geodrill will pay the prevailing market
price at the time of purchase (with a maximum purchase price of not
more than 105% above the 5 day VWAP) or such other price as
may be permitted by the TSX. The actual number of Ordinary Shares
repurchased under the New NCIB Program and the timing of such
repurchases will be at Geodrill's discretion and shall be subject
to the limitations set out in the TSX Company Manual. Daily
purchases on the TSX will be limited to 2,619 Ordinary Shares,
other than block purchase exceptions. The Ordinary Shares
repurchased by Geodrill will be cancelled.
Management and the Board of Directors of Geodrill believes that
the underlying value of the Company may not be reflected in the
market price of the Ordinary Shares from time to time and that,
accordingly, the purchase of Ordinary Shares will increase the
proportionate interest in the Company of, and be advantageous to,
all remaining shareholders of the Company.
About Geodrill Limited
Geodrill has been successful in establishing a leading market
position in Ghana, Burkina Faso and Cote d'Ivoire and also operates in other
African jurisdictions including Mali and Zambia. The Company provides a broad selection
of diverse drilling services, including exploration, delineation,
underground and grade control drilling, to meet the specific needs
of its clients. Geodrill operates a fleet of high performance
multi-purpose rigs, which offer the versatility of being able to
perform both reverse circulation and diamond core drilling.
Geodrill's client mix is made up of majors, intermediates and
juniors that are exploring for gold and other minerals. The
Company's operational proximity to countries such as Mauritania, Liberia, Sierra
Leone, Nigeria and
Cameroon positions the Company
favourably in its ability to service these markets.
Forward Looking Information
This press release may contain "forward-looking information"
which may include, but is not limited to completion of the New NCIB
Program, the impact that the New NCIB program will have on the
Ordinary Shares, the advantages to existing shareholders of the New
NCIB program, the future financial or operating performance of the
Company, its subsidiaries, future growth, results of operations,
performance, business prospects and opportunities. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"believes", or variations (including negative variations) of such
words and phrases, or by the use of words or phrases that state
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on certain assumptions
and analyses made by the Company in light of its experience and
perception of historical trends, current conditions and expected
future developments and other factors it believes are appropriate,
which assumptions include but are not limited to the market price
of the Ordinary Shares, the availability of Ordinary Shares for
repurchase on the TSX or alternative Canadian trading platforms and
the availability of funds for the repurchase of Ordinary Shares.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company and/or its subsidiaries
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements
contained in this press release including, without limitation those
described in the Management's Discussion & Analysis for the
quarter ended March 31, 2020 and the
Company's Annual Information Form dated March 30, 2020 under the heading "Risk Factors".
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in such forward-looking statements,
there may be other factors that may cause actions, events or
results to differ from those anticipated, estimated or intended.
Should one or more of these risks or uncertainties materialize or
should assumptions underlying such forward-looking statements prove
incorrect, actual results, performance or achievements may vary
materially from those expressed or implied by the forward-looking
statements contained in this press release. The forward-looking
information and forward-looking statements contained herein are
made as of the date of this press release and the Company disclaims
any obligation to update or review such information or statements,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Geodrill Limited