Queensland Bauxite to top up cash reserves for bauxite project

Queensland Bauxite will look to top up cash reserves for development of its South Johnstone Bauxite Project offering one new share for every four shares held at an issue price of $0.014 per share plus a free attaching option to shareholders.

Offer proceeds will be used to prove up larger tonnages of Indicated bauxite resource from drilling an initial surface only Exploration Target area.

The Exploration Target is a sturdy 193 million tonnes to 405 million tonnes of bauxite.

If fully taken up by shareholders, the offering would raise $1,782,167 to add to current cash reserves of $4,340,000.

In addition, the proceeds will be used to prepare for the mining of the existing indicated resources.

A Scoping Study for the South Johnstone Bauxite Project in Queensland indicated a highly profitable bauxite business could be achieved based on low capital costs, low operating costs and current Port capacity.

QBL recently beefed up its ranks to fast track environmental and mining lease applications at South Johnstone and mine planning retaining Northern Resource Consultants and John Joseph Howard.

The free attaching option has an exercise price of $0.10 at 31 July 2016 for every two shares subscribed for in the offer.

QBL said the Directors intend to take up their full entitlements to the offer.

Any entitlement shares not taken up to the Offer will form a shortfall offer which will remain open for up to three months following the closing date.