TORONTO, ONTARIO--(Marketwire - Feb. 14, 2013) - First Bauxite Corporation ("First Bauxite" or the "Company") (TSX VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) is pleased to announce that it has now signed a total of 11 Letters of Intent ("LOI's") to enter into Sintered Bauxite Supply Off-Take Agreements ("Off-Take Agreements") with global refractory products manufacturers in North America and Europe, representing approximately 70% of the anticipated 100,000 tonnes of initial annual production* from the Company's Bonasika Sintered Bauxite Project (the "Bonasika Project"). The LOI's commit both parties to conclude multi-year Off-Take Agreements based on terms which have been set out in the LOI's.
The signing of these LOI's are a direct result of the work of our technical and marketing team to build long term relationships with potential customers on all continents, who could be end users of the Company's Guysin® product and to whom "lab-scale" manufactured Guysin® samples were distributed for qualifying in their own test facilities. The strong interest demonstrated by the willingness of the potential customers to enter into LOI's at this time indicates that this test work was positive. In addition, some potential customers have requested larger samples for further "in service" testing.
* See the Bankable Feasibility Study Update dated November 18, 2011 available under the Company's profile at www.SEDAR.com or on the Company's website at website at www.firstbauxite.com.
Appointment of General Manager
The Company is also very pleased to announce the appointment of Mr. Craig Searchfield to its technical team, as General Manager of the Bonasika Project, effective February 1, 2013. Mr. Searchfield brings over 22 years of experience in the industrial and refractory minerals space, including extensive knowledge of the operation of vertical shaft kilns. During the last 18 years, until its sale to Sibelco, Mr. Searchfield has held Production Engineer, Production Manager, and General Manager roles for Queensland Magnesia Pty Ltd, one of the world's largest producers of magnesia for the global refractory and chemical markets. Mr. Searchfield holds a Bachelor of Applied Science degree from the University of Central Queensland and Masters of Business Administration and Technology degree from the University of New South Wales.
Commencement of Proppants Study
The Company has engaged consulting firms, with expertise in the application and manufacturing of proppants normally used in the Oil & Gas industry for well completion, particularly in the emerging oil and shale gas plays. Ceramic proppants are extensively used in the shale gas and oil plays currently experiencing a boom in the USA. The consultants will assist the company in conducting a Preliminary Economic Assessment ("PEA") level study of the viability of manufacturing bauxite-based ceramic proppants from rejected bauxite from its Guysin® plant and/or bauxite ore mined directly from the Bonasika 1, 2, & 5 deposits. The Bankable Feasibility Study Update*, announced on October 6, 2011, did not include the Bonasika 1, 2 & 5 deposits, so potential entry into proppants manufacture would maximize utilization of all the company's known bauxite resources and would be accretive to and, potentially enhance, the returns of the Bonasika Project. The global demand for ceramic proppants is forecast to grow strongly, both in the USA and worldwide as the hydraulic fracturing application in the Oil & Gas industry becomes better understood and more countries permit "fracking". First Bauxite currently has bench level test work underway to make proppants from Bonasika 1 bauxite and to evaluate the products made for compliance with industry requirements.
"While we work to quantify the value that proppants can add to First Bauxite, we are still very much focused on gearing up to build the Bonasika Project, as attested to by Craig joining the management team and the LOI's we have entered into," stated Hilbert N Shields, President & CEO. "Securing financing for the development of the Bonasika Project is still our primary objective."
About First Bauxite
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 Toronto 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 and twenty (20) Prospecting Licenses in the Essequibo-Demerara area. The Company has also applied for a Permission for Geophysical and Geological Survey ("PGGS") over a large area in Northeast Guyana that encompasses the two (2) Tarakulli Prospecting Licenses previously held by the Company. The Company's Bankable Feasibility Study Update defines and confirms the economic viability of an operation based on sequential mining of 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 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, President & CEO
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "intent", "anticipated", "potential", "could", "will", "would", "forecast" and similar expressions. These statements include, but are not limited to, statements regarding the conclusion of multi-year Off-Take Agreements. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate, including but not limited to, the accuracy of the Bonasika Feasibility Study Update, the continuing interest of LOI counterparties to negotiate and conclude off-take agreements and the continuing use and growth of global demand for ceramic proppants. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, competition or changes in the global sintered bauxite and/or ceramic proppants markets, the effect of capital market conditions and other factors on capital availability; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined and other risks more fully described in the Company's Annual Information Form, which is available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of February 13, 2013.
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.