TORONTO, Oct. 30,
2023 /CNW/ - Karora Resources Inc. (TSX: KRR)
("Karora" or the "Corporation") 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 8,886,939 of its issued and outstanding common shares
(the "Common Shares").
Purchases under the Bid may commence on November 1, 2023. The Bid will expire no later
than October 31, 2024. 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. The average daily trading
volume of the Common Shares for the most recently completed six
calendar months ("ADTV") was 555,662 Common Shares. Subject to the
TSX's block purchase exception, on any trading day, purchases under
the Bid will not exceed 138,915 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.
As of October 25, 2023, there were
177,738,780 Common Shares issued and outstanding. The 8,886,939
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.
Cormark Securities Inc. has been engaged to undertake purchases
under the Bid.
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 175,000-195,000 ounces by 2024 at its integrated Beta Hunt
Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment
facility is a low-cost 1.6 Mtpa processing plant, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. In July 2022, Karora acquired
the 1.0 Mtpa Lakewood Mill in Western
Australia. At Beta Hunt, a robust gold Mineral Resource and
Reserve are hosted in multiple gold shears, with gold intersections
along a 5 km strike length remaining open in multiple directions.
HGO has a substantial Mineral gold Resource and Reserve and
prospective land package totaling approximately 1,900 square
kilometers. Karora has a strong Board and management team focused
on delivering shareholder value and responsible mining, as
demonstrated by Karora's commitment to reducing emissions across
its operations. Karora's common shares trade on the TSX under the
symbol KRR and 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, and liquidity and capital resources of Karora.
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.sedarplus.ca.
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.