16:49 AEST Apr 17, 2013 ABN Newswire (C) 2004-2013 Asia Business News PL. All Rights Reserved.
Perth, Australia (ABN Newswire) - Perth-based bauxite explorer and developer,
Bauxite Resources Limited (ASX:BAU) advises that its 70% partner in the Bauxite Alumina Joint Venture ('BAJV'), Yankuang Resources Pty Ltd ('Yankuang'), has been unable to meet a number of cash calls from the BAJV Manager, and as a consequence BRL has determined that it is in the interests of the joint venture to part pay Yankuang's obligations to ensure that the BAJV can continue its operations. Accordingly, today BRL has made a payment of $482,869 to the BAJV.
Yankuang has advised that it is experiencing delays in getting funds released through new regulatory channels in China and expects to pay the full amount of the outstanding cash calls in May.
BRL is entitled to recover as a debt due from Yankuang any payments it makes in respect of Yankuang's cash calls. Further, BRL is entitled to interest on any payments made at the rate of 3% above the 90 day Bank Bill Swap Rate.
Yankuang's obligations under the joint venture agreement are guaranteed by its parent company, Yankuang Group Limited.
Based on Yankuang's recent advice, BRL believes this situation will be resolved in the next four to six weeks and BRL will be repaid with interest.
View the full release at:
http://media.abnnewswire.net/media/en/docs/ASX-BAU-632006.pdf
About Bauxite Resources Limited:
Bauxite Resources Limited (ASX:BAU) was established in May 2006 to become a part of the bauxite and alumina industries in Western Australia where four of the seven Australian alumina refineries and four of Australia’s bauxite mines are located. The Company listed on the Australian Securities Exchange (ASX) in October 2007.
Bauxite Resources is the largest tenement holder in the Darling Range with approximately 22,500 km2 of ground. This area in south-west Western Australia is acknowledged as the largest producing alumina region in the world supplying approximately 23% of global production.
Contact:
Bauxite Resources Limited
T: +61-8-9200-8200
F: +61-8-9200-8299
WWW:
www.bauxiteresources.com.au
