TAG Oil Ltd (TSE:TAO) (OTCMKTS:TAOIF) rallied Tuesday after announcing that the Toronto Stock Exchange has approved the company’s plan to buy back as many as 6.4 million shares.
The exploration company said in a statement that it plans to purchase and cancel as much as 10% of the 64 million common shares in the public float as of January 18. Echelon Wealth Partners has been hired to conduct the purchases through the Toronto Stock Exchange.
Shares of TAG Oil climbed C$0.02, or 6.1%, to C$0.35 in Tuesday's Canadian trading, having touched C$0.50 last February. They rose US$0.01, or 3.6%, to US$0.27 on the OTC Markets.
Vancouver-based TAG Oil’s common share price is at a significant discount to asset value, according to the company.
The buyback will begin February 1 and end next January. Under stock exchange rules, the maximum amount of daily purchases may not exceed 25% of the average trading volume, or 37,871 common shares.
Earlier this month, the company approved the sale of its Taranaki basin assets and operations in New Zealand to Malaysia-based Tamarind Resources Pte Ltd.
–This story has been updated to give Tuesday’s stock trading–
Contact Dennis Fitzgerald at [email protected]