TORONTO, ONTARIO -- (Marketwire) -- 02/14/13 -- 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(i) 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.
(i) 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(i), 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.
Most Popular Stories
- Slow Week Ahead of December FOMC Meeting
- Hispanics Seek to Grow School Board Members
- U.S. Companies Eager for Iranian Business
- 'Knockout Game': Myth or Menace?
- Questions Remain in Jenni Rivera's Death
- GM Bailout Saved 1.2 Million U.S. Jobs, Report Says
- Bitcoin Used to Buy Tesla Car
- Banks Fret as Volcker Vote Approaches
- Paul Walker Fans Pay Respects
- Yellen Set to Become One of World's Most Powerful Women