Last checked at 25 Nov 2008 07:00
25 November 2008
Purchase of Own Shares
Fresnillo Plc, the world's largest primary silver mining company, today announces that the Board is seeking shareholder approval to re-purchase up to 10% of the ordinary shares ("Ordinary Shares") in issue with a current intention to purchase shares of up to 1.9 per cent of the Ordinary Shares in issue on 21 November 2008. Given the recent share price evolution, and the current extraordinary market conditions, the Company believes that such a buyback programme would be a value enhancing use of part of its current cash holdings.
As the Company requires authorisation from Shareholders to purchase its own shares, a General Meeting will be held for the purpose of considering and, if thought fit, passing a Special Resolution. If this resolution is passed, the Directors would only intend to purchase up to 1.9 per cent of the Ordinary Shares (the "Buy-Back") so as to keep the Company's free float at 21 per cent or above. The Ordinary Shares will be bought on-market and may be held in treasury, or cancelled. The Company's majority Shareholder, Industrias Penoles, S.A.B. de C.V. will not participate in the Buy-Back.
The Notice of General Meeting and the Shareholder Circular has today been sent to all shareholders and is available on the Fresnillo plc website. The Circular provides shareholders with information relating to and explaining the rationale behind the proposed Buy-Back.
The Company intends to hold a General Meeting at 11.00am on 12 December 2008 at the offices of Linklaters LLP, One Silk Street, London EC2Y 8HQ.
For further information, please visit: www.fresnilloplc.com or contact:
| Fresnillo plc | |
| London Office | Tel: +44 (0)20 7399 2470 |
| Octavio Alvidrez, Head of Investor Relations | |
| Mexico City Office | |
| Gabriela Mayor | Tel: +52 55 52 79 3203 |
| | |
| JPMorgan Cazenove | Tel: +44 (0)20 7588 2828 |
| Ian Hannam | |
| Andrew Wray | |
| | |
| Brunswick | Tel: +44 (0)20 7404 5959 |
| Patrick Handley | |
| Carole Cable | |
About Fresnillo plc
Fresnillo Plc is the world's largest primary silver producer and Mexico's second largest gold producer, listed on the London Stock Exchange under the symbol FRES.
Fresnillo has three producing mines, all of them in Mexico - Fresnillo, Ciénega and Herradura; two development projects - Fresnillo II, Soledad & Dipolos; and three exploration prospects - San Juan, San Julian, Orysivo, as well as a number of other long term exploration prospects and, in total, has mining concessions covering approximately 1.3 million hectares in Mexico.
Fresnillo has a strong and long tradition of mining, a proven track record of mining development and reserves replacement, and a low cost of production, being in the lowest quartile of the cost curve for both silver and gold.
Fresnillo intends to maintain its position as the world's largest primary silver producer with the aim of approximately doubling production, on a silver equivalent ounce basis, within the next ten years and increasing its gold production.