First Bauxite Corporation is announcing that the Letter of Understanding between the Company and Rio Tinto Mining and Exploration Ltd. (“Rio Tinto”) was terminated on February 17, 2011 with immediate effect. On May 23, 2008, Rio Tinto Exploration signed a Letter of Understanding with First Bauxite Corporation, in order to form a four-year joint venture with the purpose of exploring the northern portion of the coastal bauxite belt of Guyana for economic metallurgical bauxite resources. The Essequibo-Demerara PGGS (Permit for Geological and Geophysical Surveys) was granted in 2007 to Guyana Industrial Minerals Inc. (“GINMIN”), a wholly owned subsidiary of First Bauxite, and it is still valid till September 2012. The title covers a total area of 4,368 km2. All exploration data to date from the Essequibo project have now been delivered to the Company.
The President of the First Bauxite Yannis Tsitos commented: “First Bauxite and its management would like to thank Rio Tinto and its exploration personnel in South America for the work done at Essequibo as well as for the excellent professional relationship built between the two companies in the last three years. Our technical team is currently reviewing the exploration results over Essequibo and the management will soon define the project’s future. However, I want to reiterate to the public that the main focus of the Company remains the Bonasika refractory bauxite project and its development. The Company’s mission is to become a near-term, medium size producer and supplier of high quality, refractory grade sintered bauxite.”