Last checked at 2 Jul 2012 07:01
2 July 2012
Central Asia Metals PLC
("CAML" or the "Company")
Share Repurchase Programme
Central Asia Metals PLC (AIM:CAML), announces that in accordance with the authority granted at the Annual General Meeting held on 31 May 2012, the directors have today initiated a share repurchase programme involving up to 4,300,000 shares, representing approximately 5% of the Company's issued share capital.
Subject to market conditions, the programme will be undertaken by way of market purchases of the Company's own ordinary shares. The price paid for each share purchased on the AIM Market of the London Stock Exchange ("AIM") shall be based upon the prevailing market price quoted on AIM.
In accordance with AIM market practice and guidance provided by the FSA Listing Rules, the maximum price which may be paid by the Company shall be no more than the higher of (i) 5% above the average price for the 5 business days prior to the day the purchase is made; and (ii) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation (EC) (No. 2273/2003) exclusive of expenses. In light of prevailing liquidity conditions and in line with the Market Abuse Directive, the Company may from time to time purchase in excess of 25 per cent of the average daily volume, but not in excess of 50 per cent.
Nick Clarke, Chief Executive Officer, commented:
"We believe the depressed level that our share price is currently trading at represents an opportunity for the Company to initiate a share buyback, in order to enhance value for our shareholders.
The Company has had a transformational start to the year, with the Kounrad SX-EW plant commencing copper cathode production. After two months of production a total of 1,728 tonnes of cathode copper have been produced of which 80% has been sold and delivered to Traxys Europe SA the Company's chosen offtake partner. We remain on track to achieve our 2012 production target of 5,000 tonnes."
Enquiries:
Central Asia Metals plc Nick Clarke +44 (0) 20 7898 9001
Nigel Robinson
Canaccord Genuity Limited Andrew Chubb +44 (0)20 7253 8000Rob Collins
Mirabaud Securities LLP Peter Krens +44 (0)20 7878 3362
Pelham Bell Pottinger Charles Vivian +44 (0)20 7861 3232
Lorna Spears