BRL requests shareholders to vote in favour of the proposed capital return

On 15 December 2017, Bauxite Resources Ltd announced a proposal to make a capital return of 5 cents per share, subject to shareholders approval.  The board is currently reviewing its capital management initiatives, a press release from the company says.

According to the press brief, the Company currently has around $16.2m in cash and cash equivalents in addition to its other real estate and mining project assets. Even after paying the proposed capital return of 5 cents per Share to it’s to Shareholders with an approximate $10.7m, the company would be left with cash reserves of approximately $5.5m.

BRL is hopeful of its silica sand and hard rock quartz projects owned via its wholly owned subsidiary Australian Silica Quartz Pty Ltd during the three quarters of 2017. According to the company, they would have sufficient funds for the continued development of these low cost projects even after the proposed return of capital.

The Company is also hopeful about future improvements in bauxite markets and hopeful of continuing its HD Mining joint venture bauxite projects which are fully funded by HD Mining. It also has royalty entitlement in the world class Yankuang tenements near Toodyay which can be developed in future.

The press brief also said that the proposed capital return is in the interests of all shareholders. It   offers a short term substantial return of capital to the shareholders while giving them an opportunity to invest in BRL’s other resource projects, with the potential for value generation in the medium to long term.  The company requested its shareholders to vote in favour of the capital return.