Power Metal Resources PLC (AIM:POW, OTCQB:POWMD) shares strengthened in Friday's early deals, after it announced a plannned proposed reorganisation, reducing the number of shares in issue.
It said the change would allow the company greater flexibility to return value to shareholders through dividends, buy-backs, or other distributions.
"The company will, accordingly, be seeking shareholder approval to cancel the entire amount standing to the credit of its share premium account," Power Metal said in a statement.
"This will improve the company's distributable reserves position and will provide the company with flexibility to support, amongst other things, ordinary share buy-backs and the payment of dividends or other distributions to shareholders in the future."
In London, changing hands at 16p the shares were up just over 3%.