Frontier Rare Earths Limited: Announces Normal Course Issuer Bid
![Frontier Rare Earths Limited: Announces Normal Course Issuer Bid](https://www.goldseiten.de/media/goldseiten-news.jpg)
The number of Shares to be purchased during the period of the Bid from May 29, 2012 to May 28, 2013 will not exceed 1,000,000 Shares being approximately 5.2% of the public float (Shares not held by insiders or related parties) and approximately 1.1% of the outstanding Shares as of May 18, 2012. The actual number of Shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by the management of Frontier. As at May 18, 2012 there were 89,562,781 Shares outstanding and the public float was 19,314,786 Shares. Pursuant to the terms of the Bid, Frontier will not acquire on any given trading day more than 25% of the average daily trading volume of Shares for the most recently completed six month period, being 17,973 Shares. All purchases made pursuant to the Bid will be made through the facilities of the TSX or any alternative trading system and Frontier will hold any such Shares purchased pursuant to the Bid in treasury for resale or cancellation as management may determine.
Frontier will enter into an automatic share purchase plan with its designated broker to allow for the repurchase of Shares at times when Frontier would not ordinarily be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. The Bid has been authorized by Frontier's board of directors to allow Frontier to purchase Shares if in the opinion of management the purchases can be made on terms which will enhance the value of the remaining outstanding Shares.
Frontier is undertaking the Bid because it believes that the market may materially undervalue the ordinary shares of Frontier from time to time and that the ordinary shares may trade in a price range which may not adequately reflect the value of such shares in relation to the business, assets and future prospects of Frontier from time to time.
About Frontier Rare Earths Limited (TSX: FRO) (TSX: FRO.WT):
Frontier Rare Earths Limited is a mineral exploration and development company exclusively focused on the development of rare earths projects in Africa. Frontier's flagship asset is the Zandkopsdrift rare earth project, which is located in the Northern Cape Province of South Africa and is one of the largest undeveloped rare earth deposits worldwide. Zandkopsdrift's favourable location is expected to provide significant advantages in relation to capital costs and development time compared to other rare earth projects currently being evaluated, and makes Frontier well positioned to become one of the first significant new producers of separated rare earths outside China. Frontier has a direct 74% interest and a current 95% economic interest in Zandkopsdrift.
Frontier is listed on the main board of the Toronto Stock Exchange and currently has 89,562,781 shares outstanding. Frontier is well funded, with approximately $35m cash and no debt, and this strong working capital position will finance the proposed work programme of the Company and the expected completion of a Preliminary Feasibility Study (scheduled for Q4 2012) and a Definitive Feasibility Study for the Zandkopsdrift Project (scheduled for Q3 2013).
SOURCE Frontier Rare Earths Ltd.
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Paul McGuinness
Chief Financial Officer
+352 208 80249