FOR IMMEDIATE RELEASE
|July, 11 2011||TSX - ISM Frankfurt- OI8|
TORONTO, ONTARIO -- Inspiration Mining Corporation (the "Corporation") (TSX:ISM)(FRANKFURT:OI8) announced today that it has received regulatory approval from the Toronto Stock Exchange ("TSX") to launch a normal course issuer bid (the "Bid"), pursuant to the terms set out in the notice of intention to make a normal course issuer bid (the "Notice") filed with the TSX. The market price of the Corporation's common shares may be undervalued and not reflective of the underlying value of the Corporation's assets, and that, accordingly, the purchase of its common shares under the Bid is appropriate and in the best interests of the Corporation and its stakeholders.
The Corporation has 70,403,770 common shares issued and outstanding as of July 5, 2010. The Notice provides that under the Bid, the Corporation may purchase up to 6,567,081 common shares, being 10% of the public float. The Notice further provides that, subject to the Corporation's ability to make "block" purchases through the facilities of the TSX in accordance with the TSX rules, the aggregate number of common shares that the Corporation may purchase during any trading day will not exceed 23,946 shares, being 25% of the average daily trading volume of the shares based on their trading volume on the TSX for the most recently completed six calendar months preceding the date of the Notice.
The Bid will begin on July 12, 2011 and will terminate on the earlier of July 11, 2012 or such date as the Corporation may complete its permitted purchases under the normal course issuer bid. The common shares will be acquired on the open market through the facilities of the TSX, at the discretion of management of the Corporation, and the purchase and payment for the common shares will be made in accordance with the requirements of the TSX and all other applicable laws. PI Financial Corp. will conduct the normal course issuer bid on behalf of the Corporation. The price that the Corporation will pay for any common shares acquired will be the market price of the common shares at the time of acquisition. All common shares acquired by the Corporation under this Bid will be cancelled.
Pursuant to its previous normal course issuer bid, which expired on March 14, 2011, the Corporation purchased an aggregate of 3,019,500 common shares at an average weighted price of $0.29 per common share.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "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". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.