Bauxite Resources Limited (ASX:BAU) Exploration And Refinery Joint Venture Conditions Precedent Satisfied
Perth, Mar 24, 2011 AEST (ABN Newswire) - Bauxite Resources Limited (
ASX:BAU) ("BRL" or "the Company") has signed an agreement with Yankuang Corporation ("Yankuang") to confirm that all the conditions precedent in the Bauxite Resource Joint Venture and Alumina Refinery Joint Venture have been satisfied. The two joint ventures will have an official Commencement Date of 1 April 2011. The Conditions Precedent had included relevant Chinese and Australian regulatory approvals.
Mr Scott Donaldson, the Chief Executive Officer ("CEO") of Bauxite Resources Ltd has been confirmed the CEO of the Management Company that operates the two joint ventures.
The Commencement of the two joint ventures will enable the following:
1. Funding for all activities from 1 April 2011 will be in accordance with the Joint Venture Agreements with expenditure split 90/10 on Bankable Feasibility Studies and 70/30 on Exploration activities (Yankuang/BRL respectively).
2. Continuation of the scoping and site selection studies. The scoping studies have been ratified by the Joint Venture Board and form an integral part of the Bankable Feasibility Studies.
3. BRL will be refunded a "Reimbursement Amount" being 70% of past expenditure. This amount is approximately AUD$6.8 million.
4. BRL will also be entitled to payment of an Interim Amount for part of the expenditures since the Heads of Agreement and detailed agreements were signed.
5. Continuation of an exploration program, subject to normal statutory approval processes, to define the resources to underpin the proposed alumina refinery.
Further regulatory approvals will be required closer to the times of construction and production.
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.
| ||
|
