Luca Mining completes Mexico gold mine build
Commercial production is scheduled for September, the company said.
Chalice Gold Mines Limited (ASX: CHN/TSX: CXN) is pleased to advise that its Board proposes to seek shareholder approval under section 256B and 256C of the Corporations Act (2001) for an equal capital reduction and return of up to $25 million (10 cents cash per share) to those persons or entities that are shareholders as at the appropriate record date.
Following the recent completion of the sale of the Company’s interest in the Zara Project in Eritrea, Chalice currently has approximately $81 million cash on hand, equivalent to a cash backing of approximately 33 cents per share.
The Board has undertaken a review of its capital management options and determined that these funds exceed its current capital requirements, providing justification to return some of this capital to shareholders.
The Company has requested a Class Ruling on behalf of shareholders from the Australian Taxation Office (“ATO”) to confirm the tax implications for shareholders on the basis that this is a return of capital. Details of the tax implications to shareholders will be released on receipt of the Class Ruling from the ATO.
Subject to receipt of the ATO Class Ruling and shareholder approval, it is hoped the capital reduction and return would be completed in early December 2012. Full details will be outlined in
the 2012 AGM Notice of Meeting and Explanatory Memorandum currently scheduled for late November 2012.
