TORONTO, May 14, 2021 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Company") 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 7,335,151 of its issued and outstanding common shares
(the "Common Shares").
Purchases under the Bid may commence on May 18, 2021. The Bid will expire no later than
May 17, 2022. 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 of approval, the average
daily trading volume of the Common Shares for the previous six
calendar months ("ADTV") was 581,355 Common Shares. Subject to the
TSX's block purchase exception, on any trading day, purchases under
the Bid will not exceed 145,338 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 278,000 Common
Shares at an average price of $3.14
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 6,758,932 Common Shares were available for
repurchase.
As of May 13, 2021, there were
146,703,032 Common Shares issued and outstanding. The 7,335,151
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.
Haywood Securities Inc. has been engaged to undertake purchases
under the Bid.
About Karora Resources
Karora is focused on growing gold production and reducing costs
at its integrated Beta Hunt Gold Mine and Higginsville Gold
Operations ("HGO") in Western
Australia. The Higginsville treatment facility is a low-cost
1.4 Mtpa processing plant which is fed at capacity from Karora's
underground Beta Hunt mine and open pit Higginsville mine. At Beta
Hunt, a robust gold Mineral Resource and Reserve is 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 1,800 square kilometers. The Company also
owns the high grade Spargos Reward project which is anticipated to
begin mining in 2021. Karora has a strong Board and management team
focused on delivering shareholder value. Karora's common shares
trade on the TSX under the symbol KRR. Karora shares 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, liquidity and capital resources of Karora, production and cost
guidance and the potential of the Beta Hunt Mine, Higginsville Gold
Operation, the Aquarius Project and the Spargos Gold Project and
the timing for production at the Spargos Gold Project.
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.
SOURCE Karora Resources Inc.