egolinews.com

Bauxite Resources Limited (BAU) announced that it has signed a Heads of Agreement with Yankuang Corporation for the joint development and ownership of an alumina refinery in the south west of Western Australia. Under the terms of the agreement, Bauxite said Yankuang would subscribe for an equity stake in BAU and be able to explore and exploit the Australian company’s tenements in the Darling Range.

The company said that under the proposed JV agreement, Yankuang would contribute 75% of the costs of the proposed alumina refinery to earn a 50% interest, while Bauxite would receive a 25% free carried interest and would fund a further 25% to bring its interest up to 50%.

Bauxite said, subject to shareholder and regulatory approval in both China and Australia, Yankuang would subscribe for 19.7 million shares in BAU at 50c each.

The company said the Foreign Investment Review Board has already granted its approval for the share placement and 50/50 alumina joint venture.

Bauxite Resources managing director, Daniel Tenardi, said the proposed JV is a significant value adding project.

“BRL and Yankuang will now proceed with the detailed engineering studies, environmental and regulatory approvals and resource evaluations necessary to bring to fruition a modern, world class, socially and environmentally responsible, low cost alumina producer,” Mr Tenardi said.  

As at 1016 AEDT, Bauxite Resources shares were up 2.5c to $1.06.

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