Ovoca Gold seeks to buy back 20% of existing share capital

Irish metals exploration firm Ovoca Gold is seeking to buy back up to 20 per cent of its shares at an EGM in Dublin next month.

It also plans to seek shareholder approval for a final $3 million settlement on its Russian Stakhanovsky prospect. The mining company, which had net assets of €26 million as of the end of last year, said its share price is trading at what the board believes to be “a significant discount to its net asset value per ordinary share”.

“The board has examined the merits of share buy backs and has concluded that it would be in the interests of the company and its shareholders as a whole to provide for the flexibility to implement on-market share buy backs,” it said. Ovaco’s board recommends a buy back programme of up to 17.7 million ordinary shares, which is equivalent to 20 per cent of the issued share capital. Ovoca has no current outstanding debt.