Bauxite Resources Limited (ASX:BAU) Signed Detailed Joint Venture Agreements With Yankuang Corporation
Perth, Jan 25, 2011 AEST (ABN Newswire) - Bauxite Resources Ltd (
ASX:BAU) ("BRL" or "the Company") is pleased to announce that it has executed a number of Detailed Agreements with Yankuang Corporation ("Yankuang"), for the design and construction of a modern refinery in the South West of Western Australia to refine Darling Range bauxite into alumina. The agreement to proceed to construction of the refinery is subject to all necessary government and regulatory approvals and satisfactory finding under the Bankable Feasibility Study.
Ten Detailed Agreements have been signed between BRL and Yankuang:
- Joint Venture Resource Agreement;
- Alumina Refinery Joint Venture Agreement;
- Shareholders Agreement (for Bauxite Resource Joint Venture Pty Ltd);
- Management Agreement for Joint Venture Resource Agreement;
- Management Agreement for Alumina Refinery Joint Venture Agreement;
- Rules for United Management Committee;
- Joint Venture Resource Agreement - Deed of Cross Charge;
- Alumina Refinery Joint Venture Agreement - Deed of Cross Charge;
- Voluntary Restriction Deed;
- BRL Subsidiaries Deed.
"These Detailed Agreements represent a significant step forward with Yankuang and towards the development of the proposed refinery in Western Australia," said Bauxite Resources Limited Chairman, Mr Barry Carbon.
Yankuang has agreed to fund 91% of the refinery's construction costs in return for 70% of the alumina product.
BRL will pay for 9% of construction costs, receive 30% of the alumina product and receive assistance from Yankuang to arrange financing. Yankuang will off-take half of BRL's share of alumina production for ten years.
Shareholders voted overwhelmingly in favour of the agreement at the Annual General Meeting ("AGM") on 25 November 2010. The agreement is subject to the Australian Foreign Investment Review Board.
About Bauxite Resources Limited
Bauxite Resources (ASX:BAU) (OTCMKTS:BXRDF) was established with a substantial tenement holding in Western Australia to develop new bauxite supply for the global alumina/aluminium industry. The Company listed on the Australian Securities Exchange (ASX) in October 2007.
The Darling Range in the south-west of Western Australia (WA) is the world's largest bauxite mining and alumina refining region producing around 20% of the world's alumina. This area has mined bauxite and refined alumina since the 1960s. These industries are leaders in sustainable resource development and represent the fifth largest sector of WA's resource industry.
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