Bauxite Resources Limited (ASX:BAU)
Perth, June 26, 2009 AEST (ABN Newswire) - The Board of Perth-based bauxite explorer and developer, Bauxite Resources Limited (ASX:BAU)(PINK:BXRDF) is pleased to announce that it has signed a Memorandum of Understanding (MOU) with Yankuang Group Corporation Ltd ("Yankuang").
Yankuang is a leading industrial corporation based in Shandong Province China with interests in coal mining, electricity generation, manufacturing, aluminium smelting and processing employing some 100,000 people. Yankuang is seeking to vertically integrate its aluminium business and source a long term supply of alumina.
BRL has held a number of discussions with Yankuang over the last year and the MOU formalises the direction of the relationship between our companies. The key targets of the MOU are:
1. To negotiate a direct equity investment in BRL by way of a share placement.
2. To enter into a Heads of Agreement for a Joint Venture for the development of an alumina processing plant in South Western Australia.
The MOU does not create any binding contractual obligations and Yankuang are continuing significant due diligence at a corporate and project level. BRL is working closely with Yankuang and the Board of BRL is pleased with the progress of the relationship formalised with the signing of the MOU.
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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