Australian Bauxite Limited and Marubeni Corporation have concluded a MoU to jointly conduct a pre feasibility study in relation to the Goulburn and Taralga bauxite project located in New South Wales of Australia.

A 25 million tonne bauxite resource has been declared at Taralga and Marubeni will contribute 35% toward the pre feasibility funding estimated to be USD 1.5 million.

ABx will conduct the pre feasibility study with participation by Marubeni, which will investigate the market for bauxite and other credits produced from the Goulburn and Taralga bauxite project.

At the completion of the pre feasibility study Marubeni can elect to acquire a 35% joint venture interest in the Goulburn and Taralga bauxite project and to contribute 35% of the bankable feasibility and development costs. Marubeni will help arrange the finance for the first bauxite project.

Mr Ian Levy CEO of ABx said that "We welcome the confidence shown in Australian Bauxite by one of the world's leading metals and resources companies. Marubeni has the global trading network and skills to find the ideal customers for our speciality bauxite products. This relationship will decrease market risk and expedite the funding and development of our first bauxite production."