Kambalda nickel miner Mincor Resources has launched an on-market share buy-back to re-acquire approximately 10 per cent of its issued capital.
Mincor said in a statement to the Australian Securities Exchange the buy-back would enable it to return excess cash to shareholders by acquiring its own shares, which it believes are currently trading below value.
At 9:11AM (WST) Mincor's stock was up 4.8 per cent, to 86.5 cents.
The company said after the buy-back it would be fully funded for exploration and development of its assets in the Kambalda nickel district, as well as the copper-gold joint venture it recently acquired in Papua New Guinea.
Mincor announced the $30 million joint venture with PNG-based minerals explorer Niuminco last month, which covers a range of gold exploration assets, including the advanced-stage Edie Creek gold project, and is also in the process of developing the Tottenham copper-gold project in New South Wales.
Mincor Managing director David Moore said he was confident the recently announced restructuring of the company's Kambalda operations would see a strong performance in financial year 2011-12.
The company announced in March it would close its Otter Juan nickel mine in Kambalda a year ahead of schedule, after it was forced to reduce production due to a sudden deterioration in ground conditions in the lower-most levels of the mine.
"While we have plenty of growth opportunities to spend our money on - including our recent PNG joint ventures - it is hard to see a better investment right now than Mincor's own shares," Mr Moore said.
"The buy-back allows us to make this investment while in the same process returning excess cash to shareholders.
"We will retain the cash we need to pursue our growth ambitions, and we see our nickel mines turning around strongly from early in the new financial year."
