Asia Business News

Shandong Bureau Receives Final Chinese Regulatory Approval For A$9.85 Million Investment in Bauxite Resources Limited (ASX:BAU)

Thursday June 25 10:23 AM

Perth, Australia, June 25, 2009 - (ABN Newswire) - Bauxite Resources Limited (ASX: BAU.AX)(PINK:BXRDF) has cleared the last hurdle prior to receiving the placement proceeds for a A$9.85m share placement from, the Shandong Provincial Bureau of Geology and Mineral Resources ("SDGM").

The placement price is at a premium to the closing price of BRL's shares on 23 June of A$0.44, reinforcing SDGM's confidence in BRL's ability to develop its extensive Darling Ranges land holdings into a profitable long-term bauxite production and export business.

Upon receipt of the funds which are required to be received prior to 30 June 2009, BRL will then proceed with the allotment of 19,700,000 shares to SDGM at a price of A$0.50 per share - giving SDGM a stake of 13% in BRL following the placement.

The cash injection will allow BRL to aggressively pursue its bauxite exploration program as well as its Stage 1 DSO operation, which the Company intends to commence with a trial spot shipment in the September quarter.

The Board of BRL will continue to foster the relationship built up between itself and SDGM for the benefit of both parties, with SDGM seen as an extremely important strategic ally in facilitating the export of BRL's bauxite to alumina refineries in the Shandong Province of China.
Trial Mining

BRL has completed a successful trial quarrying and bauxite extraction costean programme of some 300 tonnes of bauxite for bulk sample for overseas customers. BRL expects to commence bauxite production at its North Darling Range Project in the September Quarter of 2009 and will initially target approximately 200,000 tonnes of bauxite. BRL's Bauxite will be transported to the Kwinana port for direct loading onto the ship loading conveyor and subsequent loading onto Handimax-class ships.

The bauxite will initially be extracted from areas of private, freehold farmland where previous drill results have indicated bauxite mineralisation at surface, with grades that are consistent with current potential customers' specifications and requirements.

Trial Trade

Samples Trial trade samples obtained from the costean programme have been despatched to a number of potential Chinese refinery customers as well as a number of Chinese and Japanese mineral traders.

Beneficiation

Beneficiation studies and trials for simple dry screening and magnetic separation continue under the supervision of BRL's internationally renowned Technical Marketing and Quality Controller, Ben Ziegelaar. Significant insight and progress has been made in the abilities to upgrade and increase extraction of Al2O3 from the bauxite laterites since Mr Ziegelaar joined BRL from Rio Tinto earlier this year.

Key Exploration

Appointment BRL has strengthened its geology team with the full time appointment of Peter Senini as Principal Advisor, Geological and Technical Services. Mr Senini joins BRL from Alcoa where he worked for 28 years until his recent departure as Senior Geologist. BRL has commenced exploration further afield as BRL capitalizes on his immense experience.

BRL's Joint Venture plans for stage 2

Negotiations continue to advance with potential strategic joint venture investment partners in relation to BRL's longer term planned Stage 2 Alumina Refinery Project as BRL continues with its prefeasibility studies as a forerunner to a planned bankable feasibility study.

About Shandong Provincial Bureau of Geology & Mineral Resources (SDGM)

Established in 1958, SDGM is a Chinese provincial government organisation with a staff of 13,775. There are 21 geology and prospecting entities attached to the Bureau engaged in; geo-mineral exploration, hydro geological exploration, environmental geological survey, exploitation and development of minerals. Over the last 50 years, SDGM has discovered, assessed and invested in some 81 mineral projects worldwide including- 167 gold mines with proven reserves accounting for 25% of the country's total;

- The first original diamond deposit with a reserve of 3.49 million grams;
- Proved iron ore deposit of over 2 billion tons;
- Coal deposits of more than 25 billion tons;
- Gypsum of some 38 billion tons; and
- Sapphire deposits of over 1,445 kilograms.

SDGM has completed over 3,000 projects in relation to geological services, generating 10 trillion RMB in value to the Chinese economy. The Bureau has been involved in many exploration and development projects in more than a dozen countries as well as in other parts of China. These projects include geotechnical surveys and foundation-laying works pertaining to the construction of airports, rails, cableways and sports facilities like Beijing Olympic Games venues. For further information please visit:

http://www.sddkj.com

About Bauxite Resources Limited:

Bauxite Resources Limited (BRL) is an Australia-based company. During the fiscal year ended June 30, 2008 (fiscal 2008), the Company carried out exploration on its tenements and applied for or acquired additional tenements with the objective of identifying economic bauxite deposits. The wholly owned subsidiary of the Company is Darling Range Pty Limited. The projects of the Company include North Darling Range Project, South Darling Range Project and Kimberley Project.

Contact:
Mr Dan Tenardi
Managing Director
Tel: +61-8-9221-5019
Mob: +61-409-106-022
email: dtenardi@bauxiteresources.com.au

Mr Brad Farmer
Public Affairs
Tel: +61-8-9221-5019
Mob: +61-413-031-870
email: bfarmer@bauxiteresources.com.au
 


Source:

Bauxite Resources Limited

Copyright (C) 2009 ABN Newswire. All rights reserved.
ABN Newswire

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