Iron ore, coal and manganese miner Aquila Resources Ltd (ASX:AQA) has announced that it will issue bonus shares to its shareholders.

The company says the bonus issue is in recognition of the significant progress that the company has made in its coal, iron and manganese projects over the last 12 months and the strategic co-operation with Baosteel Group.

The company says it free entitlement is also intended to encourage greater liquidity in the company’s shares which in turn should improve the likelihood of the company being included in the ASX100 Index.

Aquila says the entitlement is to be issued for nil consideration and it will issue one new share for every 10 shares held, a maximum of 29.297 million shares.

Aquila Resources posted a loss in 2009 after a profit the year before.