TORONTO, ONTARIO--(Marketwire - Jan. 14, 2009) - Tiomin Resources Inc. ("Tiomin" or the "Company") (TSX:TIO) announces that the Toronto Stock Exchange ("TSX") has accepted the Company's notice of its intention to purchase common shares pursuant to a normal course issuer bid.
Under this normal course issuer bid, Tiomin will be permitted to repurchase up to 5 percent 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, 2009, there were 480,813,803 Tiomin common shares issued and outstanding. All shares purchased by the Company will be subsequently cancelled.
"Our view is that current market prices for our shares do not reflect the fundamental value of Tiomin's assets," said Robert W. Jackson, President and Chief Executive Officer of Tiomin.
During the most recently completed 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 repurchase, during any one trading day, a maximum of 792,885 common shares until March 31, 2009, 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 per 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.
Any purchase made pursuant to the normal course issuer bid will be made in accordance with the rules of the Toronto Stock Exchange. Tiomin will make no purchases of common shares other than open market purchases during the period of the normal course issuer bid. To the knowledge of Tiomin, no director or officer of Tiomin intends to sell Tiomin shares while the normal course issuer bid is in effect.
The normal course issuer bid will commence on January 16, 2009 and end no later than January 15, 2010.
Tiomin has appointed Blackmont Capital Inc. to make the purchases on its behalf.
Tiomin also announces that, further to its press release dated January 7, 2009, the TSX has accepted notice of its proposed further investment (the "Kivu Transaction") in Kivu Gold Corporation ("Kivu"), a private company incorporated under the Canada Business Corporations Act. In accordance with such notice, Tiomin proposes to invest up to approximately $1,500,000 in the capital of Kivu in exchange for up to 6,976,744 common shares of Kivu, representing an issue price of $0.215 per Kivu common share.
Kivu is a company controlled by the directors and officers of the Company. The Company holds 4,000,000 common shares of Kivu, or approximately 17.2% of the 23,230,000 issued and outstanding common shares of Kivu. The directors, officers and employees hold 12,050,000 common shares of Kivu, of which 11,250,000 common shares are held by the Chairman and the President and CEO of the Company, who are also directors of Kivu.
The Kivu Transaction is subject to, among other things, the approval of the independent members of the board of directors of the Company.
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