Reuters reported that Coal miner SouthGobi Resources will buy back up to 3.18 million common shares of the company which represents about 1.7% of current outstanding shares.

The share repurchase program will apply to shares on both the Toronto Stock Exchange and the Stock Exchange of Hong Kong and all repurchased shares will be cancelled.

Vancouver based SouthGobi produces coal at its flagship mine at Ovoot Tolgoi in Mongolia's South Gobi region. The company plans to sell a wide range of coal products to markets in Asia.

In the share repurchase plan, it will pay the lesser amount of either the 20-day average closing price of the shares or 1.05 times the average closing market price for five trading days before the date of purchase. Shares of SouthGobi closed down 0.8% at CAD 10.32 on Wednesday on the Toronto Stock Exchange.

SouthGobi said that the buy back which will run from June 15 to June 14, 2012 or until the purchases are completed, will not affect its growth plans.

The share repurchase program is a renewal of a plan to buy back 2.5 million common shares announced last June.

(Sourced from Reuters)