Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) ("Pan American" or the "Company") today announced that the Company's Board of Directors has approved the second quarterly cash dividend of 2012.
The cash dividend, in the amount of $0.0375 per share, will be distributed on or about Monday, June 11, 2012 to holders of record of common shares as of the close of business on Monday, May 28, 2012. Specific distribution dates and amounts of future dividends will be determined by the Board of Directors (the "Board") on an ongoing basis.
The Company's dividends are designated as eligible dividends for the purposes of the Income Tax Act (Canada).
On August 26, 2011, the Company announced that the Toronto Stock Exchange ("TSX") had accepted the Company's notice of its intention to make a normal course issuer bid (the "Program") to purchase up to 5,395,540 of its common shares, representing up to 5% of Pan American's issued and outstanding shares as of August 24, 2011. The period of the share buy-back began on September 1, 2011 and can continue until August 31, 2012, or an earlier date should the Company complete its purchases.
During 2011, the Company re-purchased 3,582,200 shares, but did not make purchases under the Program during the period of time that was needed to complete the acquisition of Minefinders Corporation Ltd.
With this acquisition now complete, the Board has decided to restart the Program, as it feels the market price of the Company's common shares does not fully reflect the underlying value of its operations, properties and future growth prospects. The Company believes that in these circumstances, the outstanding common shares represent an appealing investment for Pan American since a portion of the Company's excess cash can be invested for an attractive risk adjusted return on capital through this Program.
Under the current Program, the Company is limited to a further 1,813,340 common shares that it can re-purchase and will determine at such time as this Program is completed whether or not to seek regulatory approval to initiate a further normal course issuer bid.
Pan American will pay the market price at the time of acquisition of any common shares in accordance with the rules and policies of the TSX and NASDAQ and applicable securities laws. All common shares acquired by the Company under the Program will be cancelled and purchases will be funded out of Pan American's working capital. Although the Company has a present intention to acquire its common shares pursuant to the Program, it is not obligated to make any purchases.
About Pan American Silver
Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company by increasing its low cost silver production and silver Mineral Reserves. The Company has eight operating mines in Mexico, Peru, Argentina and Bolivia, including the recently acquired Dolores gold/silver mine in Chihuahua, Mexico. Pan American also owns the Navidad silver development project in Chubut, Argentina, the Calcatreu gold project in Rio Negro and the La Bolsa development project in Sonora, Mexico.
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