Bauxite Resources Limited (ASX:BAU) To Receive A$6.1 Million Reimbursement From Yankuang Resources
Perth, Jan 28, 2011 AEST (ABN Newswire) - Bauxite Resources Ltd (
ASX:BAU) ("BRL" or "the Company") announces that in conjunction with its agreement to form a joint venture with Yankuang Resources ("Yankuang") to explore and mine bauxite and build an alumina refinery in Western Australia (ASX 25/01/2011), agreement has been reached on the reimbursement to BRL for previous exploration. Yankuang will reimburse BRL with A$6.1mi and pay 70% of the cost of all future exploration and mining for bauxite.
BRL has also agreed to now include current DSO proposals in the joint venture company; on a 30% BRL / 70% Yankuang basis. In exchange Yankuang will pay to BRL 70% of all past and future expenditure for the current DSO proposal for mining of 2 million tonnes each year. The amount of the extra reimbursement is now being calculated for external audit.
BRL has a cash balance of approximately A$47mi and assets (equipment and property) of A$10mi before reimbursement. The nett cash outflow including reimbursements for current plans for 2011 is expected to be approximately A$2mi.
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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