Western Goldfields Announces Share Repurchase Program
TORONTO, Nov. 4 /CNW/ - Western Goldfields Inc. (TSX:WGI, NYSE
Alternext:WGW) today announced a share repurchase program by way of a normal
course issuer bid (the "Bid") to purchase, through the facilities of the
Toronto Stock Exchange (the "TSX") and the NYSE Alternext, certain of its
outstanding Common Shares.
Western Goldfields believes that the market price of the Common Shares
may not be reflective of the Company's underlying value and therefore the
Company has decided to undertake the Bid, which will also increase the
proportionate interest of, and be advantageous for, the remaining
shareholders. Western Goldfields had cash on hand of $45.4 million (including
$7.5 million of restricted cash) as of September 30, 2008. The Company is
trading at a significant discount to net asset value and the Mesquite Mine is
generating net cash flow. As at November 4, 2008, there were 136,761,919
Common Shares issued and outstanding.
The number of Common Shares to be purchased through the facilities of the
exchanges during the period of the Bid from November 7, 2008 to November 6,
2009 will not exceed 12,838,011 Common Shares, or approximately 10% of the
Company's public float, the maximum number of shares allowable as defined by
the TSX. Purchases will be made at the market price at the time of the
acquisition. Common Shares purchased pursuant to the Bid will be cancelled.
Western Goldfields has appointed RBC Capital Markets to make the purchases on
its behalf.
"Western Goldfields has never been financially stronger. We view a
repurchase of Western Goldfields shares as a truly unique opportunity for our
shareholders. The Mesquite Mine represents a fully permitted and constructed
mine which generates net cash flow and is located in the United States. The
shares are trading at a significant discount to their net asset value", said
Mr. Randall Oliphant, Chairman, Western Goldfields.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the shares in any jurisdiction.
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Western Goldfields Inc.
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Western Goldfields Inc. is an independent gold production and exploration
company with a focus on precious metal mining opportunities in North America.
The Mesquite Mine, currently the Company's sole asset, was brought into
production in January 2008, and the Company's focus is now on achieving the
anticipated rate of production and completing planned improvements to the
property. The Company has 2.8 million ounces in Proven and Probable Reserves
as outlined in more detail in its latest annual report on Form 10K filed on
www.sedar.com. Western Goldfields common shares trade on the Toronto Stock
Exchange under the symbol WGI, and on the NYSE Alternext under the symbol WGW.
For further details, please visit www.westerngoldfields.com.
Mr. Wes Hanson, P.Geo., Vice President of Mine Development, Western
Goldfields Inc., is the qualified person under National Instrument 43-101 who
supervised the preparation of the technical information contained in this news
release. Mr. Hanson is an officer of the Company.
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Forward-Looking Information
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Certain statements contained in this news release and subsequent oral
statements made by and on behalf of the Company may contain forward-looking
information within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and similar Canadian legislation. Such
forward-looking statements are identified by words such as "intends",
"anticipates", "believes", "expects", "plans" and "hopes" and include, without
limitation, statements regarding the Company's plan of business operations,
production and cost estimates, potential contractual arrangements, receipt of
working capital, anticipated revenues, and capital and operating expenditures.
These forward-looking statements are based on the best estimates of management
at the time such statements are made. There can be no assurance that such
statements will prove to be accurate; actual results and future events could
differ materially from such statements. Factors that could cause actual
results to differ materially include, among others, those set forth in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2007
filed with the U.S. Securities and Exchange Commission and the Ontario
Securities Commission, under the caption, "Risk Factors". Most of these
factors are outside the control of the Company. Investors are cautioned not to
put undue reliance on forward-looking statements. Except as otherwise required
by applicable securities statutes or regulation, the Company disclaims any
intent or obligation to update publicly these forward-looking statements,
whether as a result of new information, future events or otherwise.
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/For further information: please visit www.westerngoldfields.com, or
contact: Raymond Threlkeld, President and CEO, (416) 324-6005,
[email protected]; Brian Penny, Chief Financial Officer, (416)
324-6002, [email protected]; Hannes Portmann, Director, Corporate
Development and Investor Relations, (416) 324-6014,
[email protected]/
