Bauxite Resources Ltd. said Dec. 15 that its board proposed a capital return of 5 Australian cents per share, totaling about A$10.7 million.

The board said the capital return could affect the recent takeover bid from Mercantile Investment Co. Ltd., which offered to buy 1 of every 2 fully paid shares in Bauxite Resources that it does not already own for 9 Australian cents apiece. Bauxite Resources in early November advised shareholders not to take any action regarding this offer.

Bauxite Resources' proposed capital return remains subject to the approval of the company's shareholders, to be sought in the first quarter of 2018, and will leave the company with cash reserves of about A$5.5 million.