Bauxite Resources Ltd (BRL), held a formal Signing Ceremony in Perth on 13th May 2009 cementing the Placement Agreement reached with Shandong Provincial Bureau of Geology and Mineral Resources (SDGM).
The ceremony was attended by Ms Zheng, Director-General of Shandong Provincial Bureau of Geology and Mineral Resources (SDGM), Mr Meng General Manager of Shandong No 1 Institute for Prospecting of Geology and Minerals and their Shandong delegation. The terms of a placement equivalent to 15% of BRL’s current issued share capital, being 19,700,000 shares at an issue price of 50 cents raising A$9,870,000, was formally agreed by the parties.
The Placement Agreement is conditional upon the obtaining of all necessary Chinese regulatory approvals together with Australian Foreign Investment Review Board (FIRB) approval, by not later than 19 June 2009 with the placement funds to be received prior to 30 June 2009.
The agreement as to the amendment to the Key Terms for the proposed Darling Range Farm-In and Joint Venture Agreements (JV) provides for the inclusion of an area of a “greenfields” 1,000 square kilometres of tenement area from BRL’s current Darling Range tenement holding of 14,400 square kilometres to be available for SDGM to explore for bauxite in terms that;
• BRL to have a 40% interest in the proposed JV;
• BRL to have a free carried interest to Bankable Feasibility Study (BFS) and decision to mine stage in the proposed JV;
• SDGM to have a 60 % interest in the proposed JV;
• following a BFS and decision to mine, each of the respective parties contribute in accordance with their respective interests;
• BRL to direct the exploration and in the event of a mineral discovery to manage the mining operation, and
• the proposed joint venture is not to conflict with BRL’s business.
The BRL Board is extremely pleased with the developing relationship that has taken place between BRL and SDGM over the past 6 months with the mutual visits and the strengthening of a long term “strategic relationship”.
For full ASX media release see link below
File Download: Formal Placement FINAL 13052009.pdf