Ms. Mihaela Iancu reports
MCEWEN MINING ANNOUNCES STOCK REPURCHASE PROGRAM
McEwen Mining Inc. intends to commence a share repurchase program that authorizes the company to purchase up to 15 million shares of its common stock over a 12-month period.
Management and the board of directors believe that prevailing market conditions have resulted in McEwen Mining's shares being undervalued, and the stock repurchase program is an opportunity to minimize the adverse effects of market volatility and recapture value for shareholders. The repurchase plan is indicative of McEwen Mining's commitment to enhancing shareholder value.
Purchases of common shares may be made from time to time in the open market, in compliance with applicable U.S. and Canadian laws. The timing and amounts of any purchase will be based on market conditions and other factors, including share price, regulatory requirements and capital availability.
Under the repurchase program, up to 15 million common shares (representing approximately 5 per cent of the total outstanding common shares as of Sept. 30, 2015), may be purchased over the 12-month period during which the program remains open. In addition, the board of directors has determined that a maximum of $15-million (U.S.) may be spent on repurchases. The price that McEwen Mining will pay for common shares in open-market transactions will be the market price at the time of purchase. Any common shares that are purchased will be cancelled. McEwen Mining has no obligation to repurchase any shares under this repurchase program authorization, and the repurchase program may be suspended, discontinued or modified at any time, in the discretion of the board of directors.
The share repurchase program has been approved by McEwen Mining's board of directors and will be made in accordance with the rules and policies of the New York Stock Exchange and the Toronto Stock Exchange, as well as applicable U.S. and Canadian securities laws. The commencement of the share repurchase program is subject to TSX approval. Under the repurchase program, common shares may be repurchased for a 12-month period in open-market transactions on the NYSE, the TSX, and/or other U.S. or Canadian exchanges, or by such other means as may be permitted by the NYSE and/or the TSX, and applicable U.S. and Canadian securities laws.
Daily purchases (other than pursuant to a block purchase exception) on the NYSE are limited to 25 per cent of the average daily trading volume for the preceding four weeks. In accordance with TSX rules, any daily purchases (other than pursuant to a block purchase exception) on the TSX are expected to be limited to a maximum of 38,700 common shares, which represents 25 per cent of the average daily trading volume on the TSX for the six months ended Sept. 30, 2015.
McEwen Mining may enter into a predefined plan with its broker to allow for the repurchase of shares at times when McEwen Mining ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with McEwen Mining's broker will be adopted in accordance with Rule 10b5-1 under the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws.
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