RECEIPT OF $9.85M PLACEMENT MONIES AND ISSUE OF SHARES
RECEIPT OF PLACEMENT MONIES AND ISSUE OF SHARES TO STRATEGIC CORNERSTONE INVESTOR TO UNDERPIN BRL’S EXTENSIVE DEVELOPMENT PLANS FOR DARLING RANGE BAUXITE PROJECT, SOUTH WESTERN AUSTRALIA
Perth-based bauxite explorer and developer, Bauxite Resources Ltd (ASX: BAU, “BRL”) has today received the $9.85m placement proceeds from an entity controlled by the Shandong Provincial Bureau of Geology and Mineral Resources (“SDGM”). The Company has today issued 19,700,000 shares at an issue price of $0.50 each.
The placement price is at a premium to the closing price of BRL’s shares on 25 June, 2009 of $0.425, reinforcing SDGM’s confidence in BRL’s ability to develop its extensive Darling Range land holdings into a profitable long-term bauxite production and export business.
The cash injection will allow BRL to aggressively pursue its bauxite exploration program as well as its Stage 1 Direct Shipping Ore operation, which the Company intends to commence with a trial 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.
BAU Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
