First Bauxite Announces Signing of Mineral Agreement With the Government of Guyana for Its Bonasika Bauxite Project and the R...
November 29 2011 - 8:00AM
Marketwired
First Bauxite Corporation (TSX
VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) ("First Bauxite" or the
"Company") is pleased to announce that it has signed a bilateral
mineral agreement (the "Mineral Agreement") between the Government
of Guyana and the Company and its local operating subsidiary,
Guyana Industrial Minerals Inc., for the operation of the Bonasika
Bauxite Project (the "Bonasika Project") in Guyana, South America.
The Company is also pleased to announce that it has received its
Environmental Permit, to mine the Bonasika 6 & 7 bauxite
deposits.
Signed November 24, 2011 at a ceremony at the Office of the
President in Georgetown, Guyana, the Mineral Agreement details the
terms and conditions which govern all fiscal, property,
import-export procedures, taxation provisions and other related
conditions for the continued exploration, mine development and
operation for the life of the Bonasika Project.
The Key terms of the Mineral Agreement which, are similar to
terms for existing operations in the bauxite sector in Guyana,
include:
-- a mining royalty of 1.5% on the FOB bauxite product sales price;
-- no withholding taxes on interest payments to lenders and on dividends;
and
-- duty and value added tax exemptions on all imports of equipment and
materials for all continuing operations at Bonasika, including the
construction and operation of a planned port facility, road and power
improvements and the construction and operation of the mine.
On November 25, 2011 the Company received an Environmental
Permit from the Environmental Protection Agency of Guyana to mine
the Bonasika 6 & 7 bauxite deposits and to haul and process the
bauxite ore at the Sand Hills sinter plant complex. The Bonasika 6
& 7 deposits are the two new deposits added to the ore reserve
base of the Bonasika Project and the subject of the recently
announced NI 43-101 Technical Report - Bankable Feasibility Study
Update ("BFSU") filed on SEDAR on November 18, 2011.
The Company currently holds a Mining License (the "BML") over
the Bonasika 1, 2 and 5 deposits and a Prospecting License (the
"WCPL") over the Bonasika 6 & 7 deposits. Both the BML and WCPL
are in good standing and wholly-owned by the Company. Mining
operations are now planned to commence on the Bonasika 7
deposit.
The Company has now submitted an application to the Guyana
Geology & Mines Commission (the "GGMC") for a Mining License
covering the Bonasika 6 & 7 deposits. As part of this
application, submission of the BFSU, which includes the Mining Plan
for the Bonasika 6 & 7 deposits, and the Environmental Permit,
fulfills all requirements of the GGMC and the Company expects to
receive its Mining License in the very near future.
"The signing of this Mineral Agreement demonstrates the
commitment of the Government of Guyana to the development and
operation of the Bonasika Project and we thank the Government for
their efforts in completing these negotiations," stated Hilbert N.
Shields, CEO. "Together with the completion of the BFSU and receipt
of the Environmental Permit, all of which are major operational
milestones for the Company, FBX has a clear mandate to advance the
Bonasika Project forward by securing financing, building and
operating the mine and become a productive contributor to the
Guyana economy."
About First Bauxite Corporation
First Bauxite Corporation (TSX VENTURE:FBX) is a Canadian
natural resource company engaged in the exploration and development
of bauxite deposits in Guyana, South America. The Company has its
head office in Vancouver and is managed by experienced
geoscientists and business development professionals with worldwide
experience in the exploration and mining business across a number
of mineral commodities. The mission of First Bauxite is to become a
near term, medium size producer and supplier of high quality
refractory grade sintered (calcined) bauxite. First Bauxite
controls a large land package in Guyana's historical coastal
bauxite belt, including the Bonasika Mining License, the
Waratilla-Cartwright Prospecting License, and the Essequibo PGGS
Prospecting Permit. The Company also holds the Tarakuli and
contiguous Tarakuli North-West Prospecting Licenses in Northeast
Guyana. The Company's Bankable Feasibility Study Update defines and
confirms the economic viability of an operation based on sequential
mining of the two (2) bauxite deposits (Bonasika 6 and Bonasika 7),
and the construction of a washing plant facility, a sintering
plant, and load out facilities, at Sand Hills. The Bonasika 1, 2
and 5 deposits are additional value and would increase the mine of
life from 36 years to 44.5 years. For further information on First
Bauxite Corporation, please visit our corporate website at
www.firstbauxite.com.
On behalf of The Board of Directors of First Bauxite
Corporation
Hilbert N. Shields, CEO & Director
Ioannis (Yannis) Tsitos, President & Director
This document contains certain forward looking statements which
involve known and unknown risks, delays, and uncertainties not
under the Company's control which may cause actual results,
performance or achievement of the Company to be materially
different from the results, performance or expectation implied by
these forward looking statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: First Bauxite Corporation Ioannis (Yannis) Tsitos
President & Director 604-806-0916 604-806-0956
(FAX)www.firstbauxite.com
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