Bauxite Resources Ltd (BAU) announces that in conjunction with its agreement to form a joint venture with Yankuang Resources (“Yankuang”) to explore and mine bauxite and build an alumina refinery in Western Australia (ASX 25/01/2011) , agreement has been reached on the reimbursement to BRL for previous exploration. Yankuang will reimburse BRL with $6.1mi and pay 70% of the cost of all future exploration and mining for bauxite.
BRL has also agreed to now include current DSO proposals in the joint venture company; on a 30% BRL / 70% Yankuang basis. In exchange Yankuang will pay to BRL 70% of all past and future expenditure for the current DSO proposal for mining of 2 million tonnes each year. The amount of the extra reimbursement is now being calculated for external audit.
BRL has a cash balance of approximately $47mi and assets (equipment and property) of $10mi before reimbursement. The net cash outflow including reimbursements for current plans for 2011 is expected to be approximately $2mi.
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