Bauxite Resources looks to refinery joint venture PETER KLINGER, The West Australian October 27, 2009, 9:06 am Send Share Print Bauxite Resources is hoping to finalise terms of an alumina refinery joint venture with China's Yankuang Group within months after shareholders yesterday supported the initial funding of the project.
At a general meeting in Perth, shareholders approved the proposed issue of $9.9 million worth of Bauxite shares to Yankuang, in anticipation of a memorandum of understanding between the two groups being converted into a heads of agreement before the end of the year. Yankuang still requires Foreign Investment Review Board approval.
Shareholders also approved Bauxite's landmark $57 million capital-raising. The junior will use the cash to boost its fledgling Darling Range bauxite operation.
A controversial options package to Bauxite chief executive Dan Tenardi was also approved although with substantial shareholder opposition.
The package grants Mr Tenardi four million options, with strike prices of 90¢ and $1.10, to vest once Bauxite achieves a sustainable direct shipping operation of three million tonnes a year. Bauxite shares closed at $1.08 yesterday.
Bauxite had originally proposed options packages for most of its board, and had a less-challenging vesting condition for Mr Tenardi's parcel.
The junior axed the directors' options and modified Mr Tenardi's reward after a shareholder backlash.
BAU Price at posting:
$1.05 Sentiment: Buy Disclosure: Held
