Share Buy Back

RNS Number : 6150H

Ovoca Gold PLC

01 June 2011

 

Ovoca Gold PLC

1 June 2011

Ovoca Gold Plc ("Ovoca" or the "Company")

Commencement of buy back program

Ovoca announces that on 31 May 2011 it commenced an on-market share buy back programme.

Ovoca has in place the necessary authorities to allow the Company purchase up to 10 per cent. of its issued share capital by way of on-market share buy backs. The Company intends that share buy backs will only be executed when appropriate financial and stock market conditions prevail and when management determines that share purchases are in the best interests of the Company and its Shareholders as a whole.

On 31 May 2011 Ovoca acquired 35,000 ordinary shares of €0.125 each ("Ordinary Shares") of the Company at an average price of GBP31p. Ovoca intends to hold these shares as treasury stock.  Ovoca now has a total of 88,423,806 Ordinary Shares in issue excluding treasury shares and 35,000 Ordinary Shares held in treasury.

Tim McCutcheon, CEO, comments: "Ovoca Gold has several investments in gold mining equities, which gives shareholders exposure to gold investment before we commence our own gold production (anticipated in 2013).  As Ovoca's market value is at a discount to the Company's cash and securities position, Ovoca stock is a welcome addition to our overall portfolio."

Notes to Editors

Ovoca Gold PLC ("Ovoca" or "the Company") is a mineral exploration and mine development company listed on the AIM market of the London Stock Exchange (Ticker: OVG) and on the ESM market of the Irish Stock Exchange (Ticker: OVX). The Company's principal activity is gold exploration in the Magadan Region of the Russian Federation. Previously Ovoca acquired, developed and sold to JSC Polymetal the Goltsovoye silver project located in the Magadan Region. Currently, Ovoca is aggressively exploring and developing its 100 per cent owned Stakhanovsky, Rassoshinskaya and Nevsko-Pestrinskoye licenses.

Stakhanovsky is located approximately 40 kilometres north of Susuman, the second largest city in the Magadan region. It is accessible by year-round road and there is power infrastructure on site. Stakhanovsky's initial independently established resource was announced in an RNS on 2 February 2011 and is available on the Company's website. The Company intends to put Stakhanovsky into production by 2013.

Rassoshinskaya is in the North Eastern part of the Magadan Region about 200 kilometres from the town of Seimchan. There is no nearby infrastructure. Rassoshinskaya hosts an epithermal gold deposit named Olcha, which is the focus of Ovoca's exploration program. Olcha and nearby satellite deposits have the potential to host a high grade multi-million ounce gold resource. Olcha's initial independently established resource was announced in an RNS on 22 June 2010 and is available on the Company's website.

Nevsko-Pestrinskoye is located in the central part of the Magadan region near the town of Omsukchan. A year-round road and powerline are near the site. The license completely surrounds the Goltsovoye silver deposit, which was owned by the Company from 2006 - 2009 and sold to JSC Polymetal for US$47.7 million at the time of closing. Ovoca intends to investigate and explore known mineral occurrences that extend beyond the Goltsovoye license area onto Nevsko-Pestrinskoye.

Ovoca Gold Plc

Timothy McCutcheon [phone] [e-mail] 

Davy

John Frain [phone]

 

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