https://www.miningweekly.com

Takeover target Bauxite Resources offers to return capital to shareholders

15th December 2017

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Explorer Bauxite Resources has set aside $10.7-million of its cash to reward shareholders with a capital return of 5c a share in a move to thwart a bid from Mercantile Investment Company.

Mercantile has announced an offmarket takeover bid for Bauxite Resource of 9c a share for every two shares it did not already control. Should it gain sufficient acceptances, the suitor has promised a 6c-a-share repayment to shareholders and has announced plans to terminate a joint venture between Bauxite Resources and HD Mining & Investment in Western Australia.

Bauxite Resources reported on Friday that it had A$16.2-million in cash and cash equivalent, in addition to its real estate and mining project assets. After the proposed capital return, it would have about A$5.5-million, which the board had determined should be sufficient to cover the requirements of its silica sand and hard rock quartz projects.

“The board considers the proposed capital return offers shareholders both a short-term substantial return of capital and also offers an ongoing investment in the company’s various resource projects, with the potential for real value generation over the medium to long term.”

Shareholders will vote on the proposed capital return in the first quarter of next year.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

PGMs and green hydrogen make headlines
PGMs and green hydrogen make headlines
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.169 0.207s - 112pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: