10 March 2014
It is proposed that the shareholders of Astron will consider a resolution to reduce the share capital of the Company by means of a distribution and equal return of capital to all shareholders of $0.75 per ordinary share.
The Company previously made a tax free capital gain from the sale of its China processing companies to Imerys in 2008. The Company planned to complete a DFS for its Donald Mineral Sands project from its own funds, to allow the project to be developed using funds
from other investors as the project as one of the world's largest zircon deposits. Initial plans to identify suitable investors have been ongoing with the assistance of the Company's financial advisers, although the Company appreciates the current limited availability of capital for
mining investment. Nevertheless a number of companies in China have expressed interest and these discussions are ongoing. In this situation the Board has decided that it is now the appropriate time to make a return of capital to shareholders from the prior year's tax free capital profit.
If approved, the Company proposes to distribute the capital return to all shareholders listed as registered shareholders on the record date specified in the notice of meeting. Shareholders are asked to check their addresses with Computershare, the Company's share registry.
The notice of meeting seeking shareholders' approval will follow separately.
Registered Office: 16th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong www.astronlimited.com
distributed by
 |