First Majestic Silver (TSX: T.FR, Stock Forum) Monday announced that its Board of Directors has approved a share repurchase program over the next 12 months, this according to a company news release.
The company plans to repurchase up to 5,848,847 of its common shares, which represents 5% of the 116,976,940 issued and outstanding shares of the company as of March 1, 2013. In accordance with TSX rules, daily purchases made by First Majestic on the TSX will not exceed 119,640 common shares, or 25% of First Majestic's average daily trading volume.
First Majestic added that it is adopting this buyback because it believes that its common shares have been trading in a price range that does not adequately reflect the value of its business and its future prospects.