NEWS - Coral Gold to buy back up to 3.84 million shares Coral Gold to buy back up to 3.84 million shares
2017-06-26 13:43 ET - News Release
Mr. David Wolfin reports
CORAL ANNOUNCES NORMAL COURSE ISSUER BID
The TSX Venture Exchange has accepted for filing Coral Gold Resources Ltd.'s notice for its normal course issuer bid to be transacted through the facilities of the TSX-V.
Pursuant to the bid, Coral may purchase up to 3,844,000 common shares, which represent approximately 10 per cent of the total current public float (being the total issued shares, less shares held by insiders and their associates and affiliates). Purchases will be made at the discretion of Coral at prevailing market prices for a 12-month period. Coral intends to hold all shares acquired under the bid for cancellation. The funds for any purchase pursuant to the bid will be financed out of the unallocated working capital of the company. The board of directors believes the underlying value of the company may not be reflected in the current market price of the company's common shares, and the board has determined that the bid is in the best interests of the company and its shareholders.
David Wolfin, chief executive officer, commented: "Coral recently acquired and cancelled 8.7 per cent of its basic common shares outstanding through the recently completed transaction with Barrick Gold. Coral's current market capitalization is substantially less than its current cash balance of approximately $21-million. In addition, Coral also owns a highly attractive NSR (net smelter royalty) on the Robertson property in Nevada, which was recently acquired by Barrick Gold. Robertson is well located and synergistic with Barrick's Cortez operations, and Barrick's vision is to create a multimine operation at Cortez. Coral's board of directors believe that the value of the company's assets is currently not appropriately reflected in Coral's current share price, and therefore believes that positioning Coral to repurchase and cancel its common shares is a prudent use of Coral's cash that is accretive to Coral shareholders in the context of the current market."
For additional information on the transaction with Barrick and Coral's NSR on the Robertson property, please refer to Coral's news release on June 8, 2017.
A copy of the notice filed with the TSX-V may be obtained by any shareholder without charge by contacting the secretary of the company.
About Coral Gold Resources Ltd.
The company is exploring a portfolio of strategically located claim blocks along the Cortez gold trend in north-central Nevada.
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