American Tungsten Corp. Plans to Initiate Share Buyback Program
American Tungsten Corp. (CSE:TUNG) (OTCQB:DEMRF) (FSE:RK9) is thrilled to share its plans for a normal course issuer bid (the "NCIB"), aimed at buying back up to 500,000 common shares from its total of 25,932,806 shares. This buyback strategy represents about 2% of its outstanding shares, signaling confidence in its long-term value and progression.
Understanding the NCIB Structure
The initiative is set to commence shortly, with a focus on the open market through the Canadian Securities Exchange (CSE). The timing and quantities involved in share purchases will be influenced by current market conditions, enhancing American Tungsten's ability to adapt to the evolving financial landscape.
Funding and Execution of Share Purchases
American Tungsten is equipped to utilize its available cash for this strategic move. Importantly, while the company may acquire shares as per its plan, it is not bound to do so, providing flexibility based on prevailing circumstances.
Motivation Behind the Buyback Strategy
The primary motivation for initiating the NCIB is the belief that the current market price of its common shares is not a full representation of the company's value and future prospects. By engaging in this buyback program, American Tungsten aims to bolster shareholder value substantially.
Coordination and Market Strategy
To oversee this initiative, the company has appointed Haywood Securities Inc. as its facilitator for the NCIB, ensuring that all transactions are conducted effectively and in compliance with established policies.
Overview of American Tungsten Corp.
American Tungsten Corp., previously known as Demesne Resources Inc., engages in exploring and acquiring magnetite mineral properties. Its flagship Star Project spans approximately 4,615.75 hectares in the Skeena Mining Division, showcasing its robust portfolio in mineral exploration.
The Star Project and Growth Prospects
The Star Project is characterized by five contiguous mineral titles. This venture reflects American Tungsten's commitment to expanding its operational footprint in the resource sector and enhancing its asset portfolio. Additionally, the company is progressing with an option agreement to acquire a 100% stake in the IMA Mine Project, a previously operational tungsten mine, located across 21 patented claims in Idaho.
Contact Information and Additional Resources
American Tungsten invites inquiries regarding the NCIB or its ongoing projects. Murray Nye, the CEO, can be contacted via email at ir@americantungstencorp.com or by phone at +1 (416) 300-7398.
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Frequently Asked Questions
What is the purpose of the NCIB?
The NCIB allows American Tungsten to repurchase shares to increase shareholder value and potentially adjust the stock's market price to reflect the company's true worth.
How many shares can American Tungsten buy back?
The company plans to repurchase up to 500,000 common shares, which is roughly 2% of its overall shares outstanding.
When will the buyback program begin?
The NCIB is set to commence shortly, starting on March 24, 2025, for a 12-month period.
Who is managing the NCIB for American Tungsten?
Haywood Securities Inc. has been appointed to coordinate and facilitate the NCIB transactions on behalf of American Tungsten Corp.
What are American Tungsten's core business activities?
The company is focused on the acquisition and exploration of magnetite mineral properties, particularly through its Star Project and the IMA Mine Project.
