Golden Arrow Resources’ chairman backs share buy-back plan in shareholder message

Golden Arrow Resources Corporation (CVE:GRG) (OTCMKTS:GARWF) Chairman Joseph Grosso strongly underlined his support Monday for the board's decision, announced last week, to buy back up to 10% of the firm's shares. "I believe that the current market is creating the significant disparity seen between the share price and the combination of our asset value and exploration potential," Grosso said in a message to shareholders. READ: Golden Arrow Resources set to buy back own shares On March 12, the South America-focused exploration group said it had received the green light from the TSX Venture Exchange to begin a normal course issuer bid, beginning on March 17 and ending on March 16, 2021, to buy back around 10.6 million shares, or 10% of the public float. "This will benefit the shareholders by increasing their proportionate share interest," said Grosso, who added that increasing liquidity provided long-term benefits afforded by a tighter structure. The chairman said that currently Golden Arrow's asset value included: An extremely strong treasury of cash and cash equivalent securities 100% control of a large property portfolio in Argentina with substantial geological values and work in progress The yearly compliance fee to hold these properties in Argentina is amongst the lowest in the world Three of Argentina's most significant metal deposit discoveries had origins in this portfolio: Chinchillas, Gualcamayo and Navidad Golden Arrow has devoted considerable time, expertise and investment into advancing the portfolio to include a pipeline of mineral projects at various stages of exploration Meanwhile, the firm's potential value lies in the upside of its stock portfolio; the discovery potential of the multiple mineral projects that it is currently exploring in Argentina, Chile and Paraguay, said Grosso. "Golden Arrow's management has been successfully operating in Argentina and South America for 27 years. Our recent successes have resulted in an enviable treasury that is enabling us to fast-track our key projects to generate new discoveries, without creating shareholder dilution," he added. Contact the author at giles@proactiveinvestors.com