Board negotiations BRL Shandong
Perth, May 14, 2009 AEST (ABN Newswire) - Following the ASX announcement on 1st May 2009, Bauxite Resources Limited (ASX:BAU)(PINK:BXRDF) is pleased to announce that a formal Signing Ceremony was held in Perth earlier today attended by Ms Zheng, Director-General of Shandong Provincial Bureau of Geology and Mineral Resources (SDGM), Mr Meng General Manager of Shandong No 1 Institute for Prospecting of Geology and Minerals and their Shandong delegation. The terms of a placement equivalent to 15% of BRL's current issued share capital, being 19,700,000 shares at an issue price of 50 cents raising A$9,870,000, was formally agreed by the parties.
Further agreement was reached relating to the amendment of the Key Terms for the proposed Farm-In and Joint Venture Agreements for the Darling Range previously announced on 26th March 2009.
The Placement Agreement is conditional upon the obtaining of all necessary Chinese regulatory approvals together with Australian Foreign Investment Review Board (FIRB) approval, by not later than 19 June 2009 with the placement funds to be received prior to 30 June 2009.
The agreement as to the amendment to the Key Terms for the proposed Darling Range Farm-In and Joint Venture Agreements (JV) provides for the inclusion of an area of a "greenfields" 1,000 square kilometres of tenement area from BRL's current Darling Range tenement holding of 14,400 square kilometres to be available for SDGM to explore for bauxite in terms that;
- BRL to have a 40% interest in the proposed JV;
- BRL to have a free carried interest to Bankable Feasibility Study (BFS) and decision to mine stage in the proposed JV;
- SDGM to have a 60 % interest in the proposed JV;
- following a BFS and decision to mine, each of the respective parties contribute in accordance with their respective interests;
- BRL to direct the exploration and in the event of a mineral discovery to manage the mining operation, and
- the proposed joint venture is not to conflict with BRL's business.
The BRL Board is extremely pleased with the developing relationship that has taken place between BRL and SDGM over the past 6 months with the mutual visits and the strengthening of a long term "strategic relationship".
SDGM is viewed by the Company as extremely important in facilitating the development of bauxite markets to the alumina refineries in the Shandong Province. BRL's Direct Shipping Ore (DSO) bauxite operation is scheduled to commence in August this year with a trial spot shipment planned for the Shandong Province from the Company's Darling Range North Project area.
BRL sees the Shandong Province as an important long term market for DSO bauxite as the province's major alumina refineries rely extensively on imported bauxite. It has been reported that China will exhaust its domestic bauxite supplies within 10 years and faces reliability issues with some of its current suppliers.
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.
| ||
|
