Bauxite Resources Limited (ASX:BAU) Shareholder Letter
New Year Statement and Request for Shareholder Support from Chairman
On 26 November 2010, Bauxite Resources Limited ("BRL" or "the Company") released an ASX announcement confirming overwhelming shareholder support for a strategy towards building an alumina refinery in the south-west of Western Australia.
In January 2011, BRL and Yankuang Corporation ("Yankuang") will sign contract agreements that detail the previous binding Heads of Agreement (HOA) approved by shareholders.
On 10 November 2010, BRL announced the appointment of a new Chief Executive Officer ("CEO"), Mr Scott Donaldson, who will be commencing on 31 January 2011. The Board believes that Mr Donaldson has the right experience and qualifications to lead the Company and ensure implementation of the long-term strategy. Therefore, the Board has proposed Mr Donaldson a remuneration package which includes 3 million share options over 3 years at 40 cents per share, which is approximately a 60% premium to the current share price.
On 22 December 2010, BRL announced the appointment of a new Non-Executive Director, John Sibly, to the Board. Mr Sibly is very well qualified and has significant industry experience to provide guidance to the Company. John has extensive experience in the bauxite and alumina refinery sectors, including more than 15 years in senior positions with Alcoa (ASX:AAI) (NYSE:AA). The Board has proposed Mr Sibly a remuneration package which includes 2 million share options at an exercise price of 40 cents per share, which is approximately a 60% premium to the current share price.
On behalf of the BRL Board, I ask for shareholder support on the share options proposals for Mr Donaldson and Mr Sibly to ensure that we attract, secure and incentivise the best executives available to fulfil our long-term strategy. The Board views the pricing and volume of these share options to be modest and commensurate with the experience of the intended recipients.
The Company Secretary has been asked to provide notice and call an Extraordinary General Meeting ("EGM") on 22 February 2011 to consider shareholder votes to support these share options proposals. As Chairman, and on behalf of the Board of Directors, I strongly encourage your support of these proposals.
For the complete Bauxite Resources Limited announcement including attachment, please refer to the following link:
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.
Bauxite Resources Limited