Perth-based explorer Bauxite Resources has announced it is buying back up to 10 per cent of its issued stock over a 12 month period.
The buy-back, at 12 cents a share, will equate to $2.8 million in outlay for the company.
The company’s board said it felt the company’s current share price value did not reflect Bauxite’s strong balance sheet.
A broker will be appointed by the company to manage the buy-back.
Bauxite currently has $45 million of capital sitting on their balance sheet from a 2009 raise that was intended to fund the company’s development of a bauxite operation at Bindoon.
Plans for the Bindoon mine project stalled after setbacks which saw the Environmental Protection Authority order a public review of the site and the Shire of Chittering reject planning approval on stage 2 of Bindoon.
The company recently appointed former Sundance chief financial officer Peter Canterbury as chief executive.
Mr Canterbury will take on the role from 20 May.
