Share Repurchase Programme

RNS Number : 5851G

Central Asia Metals PLC

02 July 2012

 



 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                         [phone]

                                                                                Nigel Robinson                

Canaccord Genuity Limited                         Andrew Chubb                 [phone]
Rob Collins

Mirabaud Securities LLP                               Peter Krens                        [phone]

Pelham Bell Pottinger                                   Charles Vivian                   [phone]

Lorna Spears     

 

END

 

 

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