| Wed 25 Apr 2012, 14:28 | | FMC - Forbes & Manhattan Coal Corp - Forbes Coal intends to make a normal course |
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FMC
FMC
FMC - Forbes & Manhattan Coal Corp - Forbes Coal intends to make a normal course
issuer bid
Forbes & Manhattan Coal Corp.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
("Forbes Coal" or "the Company")
FORBES COAL INTENDS TO MAKE A NORMAL COURSE ISSUER BID
TORONTO, ONTARIO - April 25, 2012: Forbes & Manhattan Coal Corp. (TSX/JSE: FMC)
("Forbes Coal" or the "Company") is pleased to announce its intention to make a
Normal Course Issuer Bid ("NCIB"), subject to Toronto Stock Exchange
("Exchange") approval, to buy back its common shares through the facilities of
the Exchange.
The maximum number of common shares that may be purchased for cancellation
pursuant to the NCIB is that number of common shares that represents 5% of the
issued and outstanding shares of the Company. Based on the 34,865,717 shares
issued and outstanding as at April 24, 2012, the maximum number of shares to be
purchased under the NCIB would be 1,743,285. The actual number of common shares
that would be purchased, if any, and the timing of such purchases will be
determined by the Company considering market conditions, stock prices, its cash
position, and other factors.
"The Company believes that the underlying value of Forbes Coal is not reflected
in the current market price of its common shares," said Stephan Theron,
President and CEO of Forbes Coal. "We believe that in light of the current share
price, the NCIB is currently one of the best uses of our capital and is in the
best interests of our shareholders."
Purchases under the NCIB are expected to be permitted to commence on or about
April 30, 2012 and will terminate on or about April 29, 2013 or the date upon
which the maximum number of common shares have been purchased by Forbes Coal
pursuant to the NCIB. There cannot be any assurance as to how many common
shares, if any, will ultimately be acquired by the Company under the NCIB.
Forbes Coal intends that any shares acquired pursuant to the NCIB will be
cancelled.
Any purchases made pursuant to the NCIB will be made in accordance with the
rules of the Exchange and will be made at the market price of the common shares
at the time of the acquisition. Forbes Coal will make no purchases of common
shares other than open market purchases that may be made during the period that
the NCIB is outstanding.
About Forbes Coal
Forbes Coal is a growing coal producer in southern Africa. It holds a majority
interest in two operating mines through its 100% interest in Slater Coal (Pty)
Ltd., a South African company ("Slater Coal") which has a 70% interest in Zinoju
Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in the Magdalena
bituminous mine and the Aviemore anthracite mine in South Africa (collectively,
"the Slater Properties"). The mines have a substantial resource base and each
mine has a projected life span in excess of 20 years. Forbes Coal is in the
process of increasing production at both mines and looks to triple production
from 2010 levels in the next three years using existing infrastructure and
capacity. The Company has in-place transportation infrastructure allowing its
coal to reach both export corridors and the growing domestic coal market. Forbes
Coal has a strong balance sheet and an experienced coal-focused management team.
Please refer to the Company`s NI 43-101 compliant technical report on the Slater
Properties dated March 1, 2011 entitled "Technical Report on Slater Coal and
Subsidiaries, KwaZulu-Natal Province, South Africa", available on the SEDAR
profile of the Company at www.sedar.com. Additional information is available at
www.forbescoal.com.
Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a
director of Minxcon and an independent Qualified Person, as defined in National
Instrument 43-101 has reviewed and approved the scientific and technical
information contained in this release.
Cautionary Note Regarding Forward-Looking Information This press release
contains "forwardlooking information" within the meaning of applicable
Canadian securities legislation. Forwardlooking information includes, but is not
limited to, statements with respect to the anticipated impact of the NCIB, the
anticipated production results at the Slater Properties, future financial
or operating performance of the Company and its projects, statements regarding
the prospects for the business of the Company, requirements for additional
capital, government regulation of the mineral exploration industry,
environmental risks, acquisition of mining licences, title disputes or claims,
limitations of insurance coverage and the timing and possible outcome of
pending litigation and regulatory matters. Generally, forwardlooking information
can be identified by the use of forward-looking terminology such
as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking information is
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or implied by such
forward-looking information, including but not limited to: general business,
economic, competitive, foreign operations, political and social uncertainties;
a history of operating losses; delay or failure to receive board or regulatory
approvals; timing and availability of external financing on acceptable terms;
not realizing on the potential benefits of the proposed transaction; conclusions
of economic evaluations; changes in project parameters as plans continue to
be refined; future prices of mineral products; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and other
risks of the mining industry; and, delays in obtaining governmental approvals
or required financing or in the completion of activities. Although the Company
has attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking information,
there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forwardlooking information. The Company
does not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Stephan Theron
President and Chief Executive Officer
+1 (416) 861-5912
Email: stheron@forbescoal.com
Sabina Srubiski
Investor Relations Manager
+1 (416) 309 2957
Email: ssrubiski@forbescoal.com
Canada
25 April 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 25/04/2012 14:28:01 Produced by the JSE SENS Department.
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