Hunt Gold Corporation announced during November of last year that it had formed a Joint Venture Company, being a 50/50 partnership between Hunt Gold and a Mining Fund, to acquire shares of Hunt Gold's Common Stock as a short to medium term investment.
Today, the company reported their progress on the purchases:
– Total purchases to date by the Joint Venture Company now amount to
1,103,863,000 shares of “free trading” Common Stock.
– 156,983,000 “free trading” shares were purchased on November 17, 2008
at a price of US$0.00035 per share
– 196,880,000 “free trading” shares were purchased on November 26, 2008
at a price of US$0.0003 per share
According to the press release, the Joint Venture Company is not purchasing these shares to increase the stock price. As stated in the terms of the agreement between the Joint Venture Company partners, this is a short to medium term investment. Hunt Gold's Management further stated that the Joint Venture Company will not be cancelling these shares.
Although the company has agreed with its partner not to disclose the number of shares the Joint Venture Company intends to purchase, they will announce details of all purchases and sales after the sales and purchases have been transacted. Currently, the Joint Venture Company is holding 1,103,863,000 shares of Hunt Gold's Common Stock. All of these purchases were settled in cash.
The company also updated shareholders on the current status of the recently announced plans to implement a stock repurchase and cancellation program. As stated in the announcement, the purchases are to be funded through a Loan secured against part of the proceeds of the sale of its “Lookout Silver” interests. This Loan is currently being negotiated and stockholders will be kept appraised of the details of this Stock Buyback Program. Once the Loan has been secured, Hunt Gold's Management plans to immediately commence with stock repurchases in the market.
According to the press release, all shares repurchased by the company for cancellation will only be purchased in the market and not in any “off market” transactions. The company will be providing its stockholders with full disclosure of all shares repurchased and cancelled.
Hunt Gold maintains its belief that the company has been massively undervalued by the market. The company’s management is determined to significantly reduce the amount of outstanding shares and is of the firm opinion that this process will do much for rectifying this huge discount at which the company’s shares of Common Stock are trading.
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