TORONTO, ONTARIO--(Marketwire - June 26, 2012) - The Board of Directors of Corona Gold Corporation (TSX:CRG) ("Corona") has authorized the purchase of up to the greater of (i) 5% of its outstanding common shares and (ii) 10% of its outstanding common shares not including shares held by directors and senior officers of Corona and persons that beneficially own, or exercise control or direction over, more than 10% of the common shares, by way of normal course purchases ("NCIB") on the Toronto Stock Exchange ("TSX"), subject to regulatory approval. Corona intends to file the required notice with the TSX to obtain such approval as soon as practicable.
Corona believes that its common shares currently trade in a price range that does not adequately reflect their underlying value based on Corona's business and strong financial position. As a result, Corona believes that an investment in its outstanding common shares represents an attractive investment and a desirable use of a portion of its corporate funds.
The purchases may commence on the date that is two trading days after the latest of (i) the date of acceptance by the TSX of Corona's notice of intention in final executed form, and (ii) the date that Corona issues the press release required by the TSX in connection with the NCIB. It is expected that the purchases will terminate not more than one year after the purchases commence, or on such earlier date as Corona may complete its purchases.
Purchases will be made by Corona in accordance with applicable regulatory requirements and the price which Corona will pay for any such common shares will be the market price of such shares at the time of acquisition. The common shares purchased will be cancelled.
To the knowledge of Corona, no director, senior officer or other insider of Corona currently intends to sell any common shares under this bid. However, sales by such persons through the facilities of the TSX may occur if the personal circumstances of any such person change or any such person makes a decision unrelated to these normal course purchases. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased.
This press release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that Corona believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to Corona's intention to purchase its common shares under the NCIB) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of Corona based on information currently available to Corona as well as certain assumptions including, without limitation, assumptions as to the TSX approving Corona's notice of intention to repurchase its common shares pursuant to the NCIB. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Corona to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Corona. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure of Corona to obtain TSX approval of the normal course issuer bid in a timely manner.