Neometals Ltd (ASX:NMT) recently outlined that it will rewards its shareholders with a return of capital.
Neometals has now updated that the proposed cash payment to shareholders of $0.02 per share, or around A$11.2 million in total, will now be paid entirely as an unfranked dividend.
The company said after consultation with tax advisers, the board has determined that the proportion of any return that could be attributed as a return of capital is minimal.
The board has accordingly decided that is preferable to proceed immediately with an unfranked dividend and avoid additional costs and delays that would be associated with seeking shareholder approval for the return of capital.
As a result, the directors have declared a dividend of $0.02 per share, to holders of ordinary shares registered at 4.00pm WST on 22 March 2016.
The payment date is 7 April 2016.
Neometals also intends to initiate an on-market buy‐back of ordinary shares, this will commence after payment of the dividend.
The company will also initiate an unmarketable parcel sale facility, enabling shareholders with a valued at less than A$500, to sell their full holding with no broking or administration fees.
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