Perth-based Bauxite Resources Ltd has entered into an off-take agreement with a Chinese alumina producer to supply all of its entire requirements.
Bauxite and Shanxi Wusheng Aluminium Company Ltd has entered into a memorandum of understanding whereby the former company will supply up to 2.8 million tonnes of bauxite each year.
The bauxite will be sourced from the company's Darling Range tenements.
The deal also provides for funding of capital works to be arranged by Shanxi, and a direct equity investment through a placement of 15 million shares in Bauxite at a share price yet to be determined.
Bauxite has agreed not to enter into any off-take deals with third parties for the next three months as both companies finalise details of the off-take and funding deals.
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