Minara Resources (MRE) is an Australian nickel producer, with its main asset being the Murrin Murrin nickel and cobalt joint venture with Glencore International AG.
On 7 June, MRE announced a $111 million return of capital to its shareholders. Under the plan, shareholders will receive 9.5 cents for every share they own.
MRE advised that it had excess levels of cash relating to its $210 million rights issue in 2008.
A subsequent improvement in nickel and cobalt prices following the 2008 share market crash meant the capital raising ended up being more than MRE required.
MRE’s decision saw it become one of yesterday’s hot stock picks following a 7.5% jump in its share price.