TORONTO, June 5, 2018 /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 make a normal course issuer bid 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, 2,173,520 Ordinary Shares (being approximately 5% of the issued and outstanding
Ordinary Shares of the Company) over a 12-month period commencing on June 7, 2018 and terminating
on June 6, 2019 (the "NCIB Program"). The NCIB was approved by the shareholders of the Company
on May 7, 2018.
Any repurchases under the 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 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 9,074 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.
As of June 1, 2018, Geodrill had 43,635,400 Ordinary Shares issued and outstanding.
About Geodrill Limited
Geodrill has been successful in establishing a leading market position in Ghana, Burkina Faso, Cote d'Ivoire and Mali and
also operates in the African copperbelt, 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
NCIB Program, the impact that the NCIB program will have on the Ordinary Shares, the advantages to existing shareholders of the
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, 2018 and the Company's Annual Information Form dated March 29,
2018 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
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