FIRST Bauxite Corporation has been granted a two-year extension to the construction
commencement date under the Bonasika Mining Licence (BML) from January 31, 2016 to
January 31, 2018. In addition, the government may grant a further one-year extension to January 31, 2019
if it is satisfied after a review of the performance and financial standing of the
company that such an extension has merit.
The company will now discuss with the government specific modifications that are required
to the Mineral Agreement, BML and Environmental Permit to reflect the new Bonasika
Ceramic Proppant Project “Bonasika Project” scope.
First Bauxite is also pleased to provide a general business update and details on the
expected use of proceeds from the US$15 million private placement of secured convertible
notes to Resource Capital Funds announced October 30, 2015 to close in two tranches,
the first of which has closed in the amount of US$4 million, the second of which is
expected to close in January 2016.
As part of the discussions with the government on the BML extension, the company has
agreed to allocate some of the proceeds from the private placement to initial design,
permitting and infrastructure construction activities in Guyana during 2016.
It is expected that activities will focus on preliminary detailed design and engineering,
the construction of wharves on either side of the Demerara River, and on initial mine
development.
The company is also using a portion of the proceeds from the private placement to
undertake a bulk sample pit programme to confirm mining and processing assumptions
in the Bonasika Project Feasibility Study (FS), and to produce commercial volumes of
ceramic proppants in a full-scale ceramic proppant production facility.
The company also intends to conduct field trials in selected deep oil wells. Mining the
bulk sample has commenced, and planning work for trial ceramic proppant production is
well under way. (Yahoo! Finance)