Gold explorer Tribune Resources rocketed 15 per cent to a new high of $8.20 after announcing a special dividend payment to shareholders.

Tribune part-owns a gold mine known as the East Kundana joint venture in the Eastern Goldfields of Western Australia with partners Northern Star Resources and Rand Mining.

The share price jump — from yesterday’s close of $7 to pass its previous high of $7.70 — represented a $60 million jump in the miner’s market cap to more than $410 million.

Tribune (ASX:TBR) shareholders will receive a special $3.50 per share — worth a total of $175 million – funded through the sale of its accumulated gold bullion from East Kundana.

With only 50 million shares on issue, the Tribune has a tightly held register; its three largest shareholders – Sierra Gold, Trans Global Capital and Rand Mining, own 16 per cent, 17 per cent and 26 per cent, respectively.

Tribune will sell $250 million worth of gold stored at The Perth Mint at prevailing market prices, and pre‐pay the due tax to make available a fully franked distribution to all shareholders.

The Tribune Resources (ASX:TBR) share price over the past week.
The Tribune Resources (ASX:TBR) share price over the past week.

“Tribune shareholders have long been asking for more clarity around Tribune’s accumulated bullion holdings, and today’s announcement is an emphatic response that will benefit all shareholders and deliver transparent value,” company director Gordon Sklenka said.

Following the dividend payment, Tribune would remain well‐funded to pursue its mining and exploration activities — including at East Kundana, Mr Sklenka said.