Yankuang to reimburse Bauxite Res. $6.1m

Bauxite Resources says its new joint venture partner, Yankuang Resources, will reimburse it $6.1 million in exploration costs and pay 70 per cent of the cost of future exploration and mining.

Bauxite announced earlier this week that it had entered into a joint venture agreement with Yankuang for bauxite mining and exploration and the construction of a 1.1 million tonne a year alumina refinery in Western Australia.

Under that agreement Yankuan will fund 91 per cent of the refinery's construction costs in return for 70 per cent of the alumina product.

Also, Bauxite agreed to include two direct shipping ore proposals in the joint venture, on a 30 per cent Bauxite, 70 per cent Yankuang basis.

Yankuang will pay Bauxite 70 per cent of all past and future expenditure for the current DSO proposal for mining of 2 million tonnes each year.

Bauxite said it had a cash balance of around $47 million and assets of $10 million before reimbursement.