There are no rules and policies to prevent junior miners from implementing share buy-back plan and the Company is not responsible for the completion of it. It is one of ways of showing to the public that the current sp is severely undervalued. Here is one example.
JOHANNESBURG (miningweekly.com) – JSE-listed junior miner Wescoal has repurchased 6% of its own shares on the open market of the Johannesburg bourse for R6,3-million.
The company bought back a total of 8 608 851 shares at an average price of R0,74 a share between December 5 and January 7.
The repurchases have been funded from available cash resources, Wescoal said in a statement to shareholders.
The share buyback was approved at Wescoal’s annual general meeting in October, when it authority was given to repurchase 20% of its shares. The extend of authority outstanding was 20,57-million shares, equivalent to 14% of Wescoal’s share capital.
Last month, Wescoal halted all major prospecting projects to conserve cash.
