22c cash per share, page-5

The buyback (announcement below) starts on Tuesday.

The company's broker in Australia, Blackswan Equities, won't be able to buy shares and take the price straight back up to 22c.

If the average price over the past 5 sessions is 17c for instance, the maximum Blackswan can pay for a share is 17.85c on that day (5% above the average of 17c). That means that they can purchase shares up to 17.5c because 18c would be above their limit.. As the five day average creeps up, they would then be able to pay 18c.

Hopefully, whoever is selling at the moment will have a few shares soaked up by Blackswan and the sp will rise.

I held a similar type of share recently, BTV. They returned some capital and announced a new project (as i hope LRL will soon) and the share jumped 50%.

COMMENCEMENT OF SHARE BUY-BACK
Leyshon Resources Limited (AIM/ASX:LRL) advises that it will implement an on-market share buy-back (Buy-Back) of up to 21,800,000 fully paid ordinary shares in the Company. This equates to approximately 10% of the Companys fully paid issued capital.
The Buy-Back will commence on 19 January 2010 and will have a maximum duration of 12 months. The prices to be paid will comply with the ASX Listing Rules, being no more than 5% above the average price paid for the Companys shares over the five previous trading days.
The Company has A$48 million in cash held on short-term deposit in Australia together with a working capital balance of RMB1.9 million held in Beijing.
At current exchange rates this equates to approximately 12 pence per share (A$0.22 per share).
Seymour Pierce in London and Blackswan Equities in Australia will handle the Buy-Back on the Companys behalf.
As previously advised the Company is pleased with the project deal flow it has received to date and is actively working on a number of investment opportunities which have the potential to fit the criteria set out in the proposed investing policy.
Managing Director Paul Atherley commented: "Following the strong shareholder support for the proposed investing policy the Company will continue to be located in Beijing and will draw on its six years' experience in China to identify projects located in those countries and commodities which are of interest to Chinese groups.
For further information contact:
Leyshon Resources Limited
Paul Atherley - Managing Director
Tel: +86 137 1800 1914
[email protected]
Seymour Pierce Blackswan Equities
Jonathan Wright Tim Weir
Tel: +44 (0)207 107 8000 Tel: +61 89346 0303
http://www.