Bauxite gives back to shareholders

Perth exploration company Bauxite Resources has announced a return of about $9.3 million to shareholders, which has jumped the company’s share price by 12 per cent.

The company has proposed a capital return to shareholders of 4 cents per share, which adds up to about 20 per cent of the company’s total cash holdings.

BRL has conducted a funding requirements review of its operations, projects and working capital to determine where shareholders’ funds would be best allocated to create short and long term shareholder value.

Consultation has recently taken place with a number of BRL’s larger shareholders who have voiced support for a modest capital return to shareholders.

Following the $9.3 million return, BRL will still have about $31 million in cash to finance the development of the Fortuna deposit and make further progress with its Yankuang Resources and HD Mining & Investments joint venture projects. 

The company has no debt, and has various land and equipment assets on its balance sheet. 

Bauxite last traded at 14 cents per share at 12:10 WST.