Bauxite Resources chief executive Peter Canterbury.
Bauxite Resources chief executive Peter Canterbury.

UPDATE 2.20pm: Shares in Bauxite Resources were up sharply after the company announced a plan to return $9.2 million in cash (four cents a share) to shareholders.

The company said a recent cost review showed the company had sufficient cash allocated for its projects and a surplus of cash.

Bauxite said it would hold about $31 million in cash after the capital return to finance the development of the Fortuna deposit and make further progress with its Yankuang and HD Mining JV-led projects.

The company said it also had no debt as well as various land and equipment assets on its books.

The company said its larger shareholders had backed the idea of a modest capital return.

Bauxite Resources is focused on the development of its Fortuna bauxite project near Wundowie north east of Perth, which hosts a known resource of 39.5 million tonnes.

The company says the deposit is near the surface and close to existing rail and port infrastructure. It intends developing Fortuna as a direct shipping ore project.

Chief executive Peter Canterbury said it was a priority for the company to develop the resource either through direct development or a joint venture partnership with potential end users.

Bauxite Resources shares closed up 1.5 cents, or 12 per cent, at 14 cents after touching an intraday high of 15.5 cents.

The West Australian

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