First Bauxite Corporation
TSX VENTURE : FBX
FRANKFURT : FBI
BERLIN : FBI

First Bauxite Corporation

November 29, 2011 09:00 ET

First Bauxite Announces Signing of Mineral Agreement With the Government of Guyana for Its Bonasika Bauxite Project and the Receipt of Environmental Permit to Mine the Bonasika 6 & 7 Deposits

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2011) - 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.

Contact Information

  • First Bauxite Corporation
    Ioannis (Yannis) Tsitos
    President & Director
    604-806-0916
    604-806-0956 (FAX)
    www.firstbauxite.com