Golden Arrow Resources (GRG.V) has announced the TSX Venture exchange has accepted its notice to start a Normal Course Issuer Bid, whereby Golden Arrow would repurchase a maximum of 1 million shares (which is 2.4% of the total amount of outstanding shares). The NCIB will start on November 25th and the Golden Arrow management decided to do this repurchase program because they think the current share price doesn’t reflect the true value of the company and its assets, as Golden Arrow is currently trading at just over its cash value.
Additionally, the company expects to release the PEA on the Chinchillas project any week now, which will use a throughput of 5,000 tpd as base case scenario. We are looking forward to the Net Present Value of the project which we estimate at a high double-digit number using an 8% discount rate and a silver price of $20/oz and costs in line with Silver Standard’s (SSO.TO, NYSE:SSRI) nearby Pirquitas mine. We will obviously release an update report when the results of the PEA will have been released.
Disclosure: The author holds a long position in Golden Arrow Resources. Golden Arrow is a sponsor of the website. Please see our disclaimer for current positions.