Bauxite Resources updates on its quarterly activities and cashflow status

Bauxite Resources Limited (BRL) has recently announced its December 2015 quarterly activities and cashflow results. Following are the financial and operational highlights:

- Cash at bank at 31 December 2015 was A$21.1 million and no debt.

- Quarter exploration activities were minimal within the Bauxite Alumina Joint Venture (BAJV) as activities were focused on the completion of the sale of BRL's interest in the BAJV to Yankuang.

- BRL remains in its joint venture with HD Mining (HDJV) under which all exploration and study costs are met by HD Mining. The current resource base is 87.8Mt - HD Mining have an 'earn in' of up to 60% on decision to mine.

Activity Summary for December 2015 Quarter

During the quarter exploration activities were minimal within the Bauxite Alumina Joint Venture (BAJV) as activities were focused on the completion of the sale of BRL's interest in the BAJV to Yankuang and on other administrative measures to reduce ongoing corporate expenditure. Completion of the Yankuang transaction occurred on 21 January 2016.

Current fiscal restraints advised in the last quarter have led to HD Mining deferring a decision to commence a feasibility study for the HDJV's Dionysus project. Water level monitoring continues at Dionysus. A meeting has been scheduled for February to determine the way forward for the HDJV following delays from HD Mining in meeting its JV contribution commitments over the last quarter.

Corporate Developments

The sale of Yankuang Joint Venture interest and buy-back of shares has been completed. As announced on 21 January 2016, following shareholder approval on 18th January 2016, completion occurred on the sale of BRL's interest in the joint ventures with its Chinese partner Yankuang Resources for $7.15m and the buy-back of Yankuang's 19,700,00 shares for $1.15m.

BRL has no further obligations under the BAJV to continue to fund the joint ventures, which has substantially reduced BRL's ongoing costs of operation.

Cash Position and Shareholder Information

Bauxite Resources is in a strong financial position with significant cash reserves and no debt. As at 31 December 2015 the company held AU$21.1 million in cash.

Future Operations

The Board is now focussed on identifying new oportunities both within and outside the mining industry and will undertake reviews of new projects in the coming months.