East-African focussed Chalice Gold Mines has announced plans of a payout to shareholders estimated at 10 cents per share.
The company's sale of its Zara Project in Eritrea earlier this month has resulted in it having about $81 million cash on hand.
The sale to China's SFECO Group and the Eritrean National Mining Corporation represented a transaction worth $US114 million.
In an announcement to the ASX, Chalice said the sale had resulted in the company holding funds exceeding capital requirements, and provided justification for returning some of the capital to shareholders.
It was seeking approval for the return of up to $25 million to current shareholders and requested a class ruling on behalf of shareholders from the Australian Tax Office.
It said it hoped the capital reduction and return would be completed in early December.