Toronto-listed miner Tiomin Resources will this year be on the hunt for merger-and-acquisition opportunities created by the combined impact of collapsing commodity prices and difficult capital markets.

Companies with producing or near-producing assets that normally would be able to raise the capital required to start production are unable to do so, creating potential merger candidates for Tiomin.

Tiomin president and CEO Robert W Jackson says that the company is considering a share buy-back programme at a significant discount to the shares’ cash value.

The TSX has accepted the company’s notice of its intention to buy common shares pursuant to a normal course issuer bid.

Under this normal course issuer bid, Tiomin will be permitted to repurchase up to 5% of the common shares outstanding over a one-year period or an aggregate of up to 24 040 690 common shares.

The purchases by the company will be effected through the facilities of the TSX and will be made at the market price of the common shares at the time of purchase.

As at January 13, there were 
480 813803 Tiomin common shares issued and outstanding. All shares bought by the company 
will subsequently be cancelled.

“Our view is that current market prices for our shares do not reflect the fundamental value of our assets,” says Jackson.

During the past six months, the average daily trading volume for the common shares of Tiomin on the TSX was 1 585 770 shares.

Consequently, under the rules and policies of the TSX, Tiomin will have the right to buy back during any one trading day, a maximum of 792 885 common shares until March 31, representing 50% of the average daily trading volume, and 396 442 common shares thereafter for the duration of the bid, representing 25% of the average daily trading volume.

In addition, Tiomin may make, once a calendar week, a block purchase (as such term is defined in the TSX company manual) of common shares not directly or indirectly owned by insiders of Tiomin, in accordance with the rules and policies of the TSX.

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