Century Iron Mines to buy back more shares through NCIB

Century Iron Mines (TSE:FER) is buying back more of its shares, having applied to the Toronto Stock Exchange for a renewed normal course issuer bid (NCIB). 

The renewal would allow the company to continue to make purchases of its common shares through the facilities of the TSX, of up to 1.823 million shares of Century Iron's currently outstanding stock - equating to about 1.9 per cent. All shares purchased under the renewed NCIB would be cancelled. 

The company's previous normal course issuer bid expired on August 21, allowing it to acquire 677,000 common shares back, at an average price of 61 cents apiece. 

Century Iron said that on any given day, up to 14,094 common shares can be bought, other than under a block purchase. 

"Management of the company believes that its common shares represent an attractive investment at current and recent prices, and that purchases of the common shares would be an appropriate and desirable use of available funds," the Canadian iron ore development company said in a release Friday. 

"Century is confident that the issuer's solid cash position can support the renewed NCIB without reducing the company's ability to execute its exploration, development and other business strategies.

The new NCIB will take effect on September 17, and end no later than September 16, 2014. 

Last month, Century Iron reported strong results from its recent exploration program on its Schefferville West property, with one target area in particular, Red Dragon, returning “encouraging high grade DSO type mineralisation,” according to a statement from the Toronto-based explorer released with the announcement. A number of direct shipping ore (DSO) targets were outlined based on the geophysical signature and favorable geology and a small orientation drilling program was carried out to test a number of these anomalies.

The company, which is aiming to become a major iron ore producer, is one of the largest iron ore companies in Canada, in terms of number of claims by area. It has 6,493 claims and titles, covering some 198,779 hectares in the provinces of Québec and Newfoundland & Labrador. It has interests in four iron ore projects, none of which yet generate revenue.

It finished up its first fiscal quarter for the period to the end of June with cash and equivalents of $39.4 million, as it continues to advance its iron ore projects in Quebec, with a feasibility study for its Joyce Lake project planned.