Bauxite Resources sets out facts for Mercantile; says considerable progress made in exploration

In an official response to Mercantile chairman Ron Brierley’s comment that “it is time to call a halt” Bauxite Resources said the statement made was “misleading.” Bauxite in its ventures has been satisfactorily successful and continues to make further strides in bauxite exploration and mining domain.

“The company considers the statement misleading. It is important to set out some facts about what has been achieved by the company since the listing in 2007,” Bauxite chairman Robert Nash said.

Earlier this month, Mercantile had announced that it was mulling a takeover bid for half of its unowned stakes in Bauxite Resources. The company cited its displeasure at Bauxite’s slow-paced progress in its venture as the reason for such a decision.

Brierley commented that after 10 years of “unsuccessful” prospecting, it was time for the miner to call it a day. To this, Robert Nash replied setting out some facts about its achievements till date.

Bauxite Resources has achieved significant success in its exploration through the establishment of the Fortuna resource, its joint venture Felicitas resource.  All ventures since its listing in 2007 have delivered shareholder value. The company has also been able to reduce cash burn significantly over the last one and a half year period. It included reasonable cuts in fees for employees and directors.

Bauxite’s BOD has reiterated its advice to shareholders to not to take any action on the proposed takeover bid by Mercantile.