AL

This is a very cheap stock.

Today Air Lease Corporation (NYSE: AL) announced a long term lease agreement with Emirates for one new Boeing 777-300ER aircraft, which is scheduled for delivery in 2015

one slight problem--hardly any aluminum is used

lol one day after .30 warrants expire it takes off
welcome to the adventure exchange

Add Guyana to that list ACADEMY VENTURES INC. - http://www.academyventuresinc.com
see previous posts

Academy Ventures says resources not NI 43-101-compliant

2008-02-08 08:26 MT - News Release

Mr. Ioannis Tsitos reports

NEWS RELEASE CLARIFICATION ACADEMY VENTURES EXECUTES LETTER OF INTENT TO ACQUIRE BONASIKA Ltd AND ITS BAUXITE MINING & EXPLORATION ASSETS IN GUYANA

Academy Ventures is presenting a clarification in relation to the company's news in Stockwatch dated Feb. 7, 2008, about the execution of a binding letter of intent with Bonasika Ltd., the 100-per-cent holding company of Guyana Industrial Minerals Inc. (Ginmin). Ginmin is the holder of specific mineral titles in Guyana issued by the Guyana Geology and Mines Commission and the Minister of Mines of Guyana, as referred in the company's news release.

Data reported in the news release in relation to existing bauxite tonnage in the properties, have been provided by Ginmin. Most references to resources are classified as historical mineral resource estimates, and as already reported in the news release, estimations are based on historical drill holes by Demba, a Guyanese subsidiary of ALCAN, or other credible sources.

It must be noted that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon. The Bonasika feasibility study is not compliant with regulations and is intended for internal company use only.

Academy would like to re-enhance the fact that Bonasika will commence immediately the preparation of a National Instrument 43-101-compliant engineering report on the properties owned by Ginmin, as specified in the executed letter of intent. The report and consent of an independent qualified person will be submitted to the TSX Venture Exchange in conjunction with seeking its acceptance to the transaction within 45 days.

The company's qualified person and company's director is Egil Livgard, PEng.

Academy to buy Bonasika

2008-02-07 13:39 MT - News Release

Mr. Ioannis Tsitos reports

ACADEMY ACQUIRES BAUXITE ASSETS IN GUYANA

Academy Ventures Inc. has executed a binding letter of intent (LOI) with Bonasika Ltd., a British Virgin Islands-registered company, pursuant to which Academy will purchase from the shareholders of Bonasika all of the issued shares of Bonasika. Bonasika is the holding company of Guyana Industrial Minerals Inc. (Ginmin) of Georgetown, Guyana, with Bonasika actually holding 100 per cent of the issued shares of Ginmin. Upon successful completion by the parties of their due diligence reviews and upon receipt of the necessary regulatory approvals, the parties will execute a definitive agreement.

Pursuant to this transaction, the holders of the Bonasika shares will receive 4.5 million Academy shares from its treasury. In order to satisfy regulatory requirements, Bonasika will commence the preparation of a satisfactory business plan and audited financial statements as required by the TSX Venture Exchange. Additionally, Bonasika will commence the preparation of a National Instrument 43-101-compliant engineering report on the properties owned by Ginmin. The report will be submitted to the TSX Venture Exchange in conjunction with seeking its acceptance to the transaction. Academy and Bonasika have agreed to proceed diligently and in good faith in order to complete the transaction before April 30, 2008, or such other date as may be mutually agreed upon, and subject to the receipt of all necessary regulatory approvals.

Ginmin is a private company, incorporated under the laws of Guyana in 2000 for the purpose of exploring and developing Guyana's bauxite, silica sand and other industrial mineral resources. Ginmin's chief executive officer, Hilbert N. Shields, is a geologist and entrepreneur with over 28 years experience in the mining and exploration business. Ginmin is the holder of the following mineral titles in Guyana issued by the Guyana Geology and Mines Commission and the Minister of Mines of Guyana: the Bonasika mining licence, the Waratilla-Cartwright prospecting licence, and the Essequibo-Demerara (Esse-Dem) permission for geophysical and geological survey (PGGS).

The following information has been provided by Ginmin and will be the subject of the National Instrument 43-101-compliant qualifying report, a report which will commence shortly over the properties, as mentioned above.

Bauxite is best known as the principal raw material of aluminum metal, however, there are non-metallic uses of bauxite in chemical applications and the manufacture of refractory products, proppants, abrasives and cement.

The Bonasika mining licence covers three mining leases, 928 acres in size, located only 75 kilometres from Guyana's capital, Georgetown, 45 kilometres from the Timehri International Airport and 30 kilometres from the navigable Demerara River. The mining leases encompass three adjacent deposits: Bonasika 1, 2 and 5. They are fully permitted mining licences with an approved environmental impact assessment and they are virtually ready to go into mining. This mining licence was granted in May, 2001, and is valid, initially, for 15 years, after which the company shall have the right to apply for a renewal of seven years. A detailed feasibility study is available. The three Bonasika deposits are unique in Guyana in that they occur at or very close to surface (zero to 10 metres of overburden). Together, they host approximately five million tons of bauxite with more than 45 per cent Al2O3, including approximately 800,000 tons of chemical-grade bauxite (CGB), as outlined by historical drilling by Demerara Bauxite Company (Demba), a subsidiary of Alcan, and more or less confirmed by more recent drilling and trenching by Ginmin. Ginmin plans to start mining the Bonasika 1 deposit in 2009 at a rate of 200,000 tonnes per year, and plans to sell dried bauxite into the cement (cement-grade bauxite (CemGB)) water clarification and proppants manufacturing industries in the southeastern United States.

The Waratilla-Cartwright prospecting licence has a size of 9,884 acres and is located seven kilometres from the Bonasika mining licence. It was again drilled by Demba. The Demba drill logs and plans on which it based historical and traditional reserve estimates of 13.13 million tons of refractory A Grade super calcined bauxite (RASC) and 4.39 million tonnes of metallurgical grade bauxite (MAZ) were retrieved from the archives. Using the same, archival, 68-Demba-drill-holes database (in excess of 6,000 metres), and defining MAZ as bauxite with greater than 50-per-cent available alumina, less than 7.5 per cent reactive silica and less than 3.5 per cent iron, with approximately 31 drill holes intersecting economic bauxite, Ginmin calculated a global MAZ resource of 28 million tonnes in this deposit. Within this global MAZ resource of 28 million tonnes are eight million tonnes of chemical-grade bauxite (CGB). Ginmin has designed an 18-month exploration program and budget to complete a bankable feasibility study on the viability of mining this deposit. With Waratilla-Cartwright having very similar geological operating characteristics to the existing Bosai Mine at Linden, it is Ginmin's opinion that the Waratilla-Cartwright mine can be started up as a phase II mine supplying MAZ bauxite to any of the known alumina refineries in the region, as well as increased tonnages of CGB and CemGB.

The Esse-Dem PGGS is huge and covers two million acres of Guyana's highly prospective coastal bauxite belt. It is located northeast of the traditional mining centre of Linden through to Charity at the head of the Pomeroon River. This PGGS was granted in September of 2007 and has a three-year life, with an obligation to relinquish 25 per cent of the area every year. Ginmin has the right to apply for, and be granted, up to 20 prospecting licences at any time during the three-year period. The PGGS is for the rights to explore for, and mine, with the grant of a mining permit, bauxite and all aluminous ores, kaolin and all commercially exploitable clays, silica sand, all rare-earth minerals, nickel and nickel laterites, uranium, and base metals. The Esse-Dem PGGS does not host any drill-indicated reserves. However, it covers the area of the Pomeroon and Essequibo group of the coastal belt bauxite deposits where there are significant numbers of showings, some of which have been historically documented by Bleakley in BGGS bulletin No. 34 of 1964: "In the Pomeroon area, bauxite pebbles assaying up to 57 per cent Al2O3 were reported as far back as 1916. In the Supenaam River-Blue Mountains area, bauxite near Chalk Hill assayed 58.7 per cent Al2O3 and pisolithic bauxite assaying 60.96 per cent Al2O3 was discovered near the Groete Creek area. Blind-blanket drilling by Harvey Aluminum Company in this area yielded two ore-grade holes. Also, drilling by the same company in the small plateau forming the eastern end of the Blue Mountains consisted of 65 holes, all of which penetrated material of commercial grade."

The proposed exploration program consists of compilation into a modern GIS database of the considerable historical data, geomorphologic and paleo-landform studies, orientation ground geological and geophysical surveys in the Waratilla-Cartwright area, airborne geophysics over the larger area followed by ground prospecting, and eventually diamond drilling of selected targets. This program is designed to be undertaken in phases over the three-year period. Once the prospecting licences are granted, systematic exploration consisting mostly of diamond drilling, metallurgical testing and engineering work will have to be done to economically define all the discovered orebodies.

Academy Ventures' president, Ioannis (Yannis) Tsitos, on this major acquisition, stated:

"Guyana is a stable democratic country and the only English speaking country of South America with a legal system based on English common law. It is known that Guyana has a long mining history and, more especially, a long history of high-quality bauxite production. Subject to the successful conclusion of the transaction as discussed above, it is my view, as well as our board's opinion, that the acquisition of Bonasika Ltd., with its mining and exploration assets in Guyana, provides to Academy a platform of significant growth, discovery and mining potential. We recognize that today's small-cap mining company investor appreciates a company with a focused approach, but with multiple project exposure throughout the exploration pipeline, from greenfield exploration to advanced projects and potential earnings via small scale mining, and that is certainly what this transaction offers. We are glad and hold an overarching desire to be part of a development which will be profitable to the company's shareholders, and can also make a significant contribution to the development of Guyana and of the Guyanese people."

Upon the closing of the transaction with Bonasika as discussed above, Academy appointed Mr. Shields as chief executive officer and also to its board of directors. Academy also announces that following the closing of this transaction, Charalambos (Harry) Katevatis will resign as chief executive officer, but he will remain a director of the company.

Mr. Shields, MSc, has over 28 years experience in the mineral exploration and mining industry, the core years consisting of 14 years with Golden Star Resources Inc. as vice-president, with responsibility for gold exploration in Guyana and Venezuela and diamond exploration worldwide. Mr. Shields managed the exploration of the Omai gold deposit in Guyana, from acquisition by Golden Star through to the completion of the feasibility study, with the involvement of Cambior, and later became a director of Omai Gold Mines Ltd. He was also responsible for the acquisition by Golden Star of the Gros Rosebel property in Suriname and managed the early exploration of this, now Iamgold Inc.-operated, producing mine. He was also a member of the successful acquisition and transition management team of the Bogosu mine in Ghana, again for Golden Star.

Mr. Shields attained a bachelor's degree in geology and the environment from Oxford Brooks University, U.K., and a master's degree in geology from the Mackay School of Mines, University of Nevada, Reno, U.S. His career has been spent acquiring global experience through exploring, evaluating prospects, and/or mining either gold, diamond or bauxite in a number of countries including Nicaragua, Suriname, U.S., Canada, Philippines, Guyana, Venezuela, French Guiana, Brazil, Peru, Bolivia, Ghana, Sierra Leone and Ivory Coast. He spent two years with the mineral deposits section of the Ontario Geological Survey before joining Golden Star in 1986. In 2000, he resigned from Golden Star and founded his own companies holding bauxite and gold mining and exploration concessions in Guyana. In late 2001 to early 2002, he was attached to the Adam Smith Institute of the U.K. to provide consulting services to the government of Guyana as they consolidated operatorship of the Berbice River bauxite mines. For two years, from 2002, he was a senior member of the management team of the Aroaima Bauxite Mining Company, which produced 1.2 million tonnes per year of metallurgical-, chemical- and cement-grade bauxite. Mr. Shields was also the chairman of the mining chapter of the National Development Strategy, a Carter Center-financed, private-sector blueprint for the development of Guyana, which was adopted by its national parliament. Academy Ventures' president, Mr. Tsitos, about the new chief executive officer-appointment, stated: "We are very pleased and fortunate to have Mr. Hilbert Shields joining our board, as the new CEO of the company. Mr. Shields brings to Academy a unique blend of global experience in mineral exploration, operational project management, business development, and an entrepreneurial flair for project conception and execution, especially in the Guiana Shield. This skill set will serve the company very well in its endeavour to focus on both the mining and the exploration for bauxite, gold and/or other commodities within this specific geographic region."

West Africa, China....
Pretty slim pickings for bauxite jrs it seems.

NAV wood

Interview: Rio Tinto CEO Says "Cash Is King"

http://www.resourceinvestor.com/pebble.asp?relid=34099

Post/wire say Alcan hires Bechtel to report on Kitimat

2007-07-16 05:56 MT - In the News

The Financial Post reports in a Reuters dispatch Saturday that Alcan said Friday it has hired U.S. engineering firm Bechtel to produce a detailed feasibility study and confirm cost estimates and scheduling for the expansion of Alcan's Kitimat smelter in British Columbia. The unbylined item says Alcan, which has agreed to be taken over by Anglo-Australian miner Rio Tinto PLC for $38.1-billion (U.S.), has said it plans to spend $1.8-billion (U.S.) expanding the smelter to bring its annual output to 400,000 tonnes per year. "The contract with Bechtel aims to provide all the planning, engineering and site investigation work necessary to submit to the Alcan board of directors for final approval of the project," Alcan said in a release. Financial details of the contract were not disclosed.

Navasota to sever IR ties with Contact

2007-07-05 12:43 MT - News Release

Mr. James Gillis reports

NAVASOTA RESOURCES TERMINATES CONTACT FINANCIAL AGREEMENT

Navasota Resources Ltd. has terminated its investor relations agreement with Contact Financial Corp. effective Aug. 5, 2007.

Alcan Intends to Seek Rival Bidder to Counter Alcoa Hostile Offer

By Ross Marowits 13 Jun 2007 at 01:20 PM GMT-04:00

http://www.resourceinvestor.com/pebble.asp?relid=32923

MONTREAL (CP) -- American aluminum company Alcoa Inc. [TSX:AL; NYSE:AL] remains in the driver's seat to complete a hostile takeover of Canadian rival Alcan Inc. [NYSE:AA] even though other global mining companies are circling overhead, says an industry analyst.

'I'm just waiting for Alcan to find a white knight and so far I haven't seen it,' Charles Bradford of New-York based Soleil Securities said in an interview.

On Wednesday, Alcan reinforced its intention to find another major manufacturer to either boost the selling price or help it fend off the Alcoa bid.

Christel Bories, Alcan's CEO of engineering products units, said at a news conference in Paris that the company's board is working on options other than Alcoa, noting large mining companies such as Australian mining giant BHP Billiton [NYSE:BHP] are flush with money.

But Bradford said none of the other suitors mentioned to date can produce the synergies offered by Alcoa or would likely have an interest the downstream packaging or aerospace divisions of either North American company.

Alcoa has said it expects to be able to squeeze about US$1-billion in cost savings from the merger.

With no other bid currently on the table, Alcoa is under no pressure to boost its bid, he said. It has an US$8 billion cushion after using just US$22 billion of the US$30 billion it has borrowed for its current offer.

'They have the wherewithal to raise the bid and counter BHP if BHP does make a bid,' Bradford said.

In fact, Alcoa CEO Alain Belda hinted as much when he told reporters in May that he was prepared for any eventuality.

Alcan spokeswoman Anik Michaud downplayed the comments from Bories, describing them as 'old news.'

'It's what we've been saying since day one,' she said from Paris. 'We are considering all of our options.'

Last month, Alcan rejected Alcoa's hostile C$27-billion cash-and-shares offer. Alcan chief executive Dick Evans has said the company is talking with third parties about 'various other transactions.'

Alcan officials were in Paris ahead of the international air show to announce it has won a new long-term agreement to supply European aircraft maker Airbus, a shot across the bow of Airbus supplier Alcoa.

Montreal-based Alcan did not disclose financial terms of the 'multi-year' contract with Airbus, citing competitive factors.

The deal covers a variety of plate, sheet and stringer products, along with small extrusions and tubes for planes including the superjumbo A380 and the new A350 XWB.

The Airbus deal with Alcan comes just over two years after competitor Alcoa, the world's biggest mining company, declared that the first flight of A380 'took with it more new Alcoa products and solutions than any other aircraft in Alcoa's 100-plus years of aviation history.'

At that time, Alcoa said it had signed a long-term supply deal with Airbus worth nearly C$2 billion. At the same time Alcan described itself as a 'major supplier' to the A380 project.

Bradford said he wasn't surprised by Alcan's deal with Airbus given its Issoire facility in France acquired with the purchase of Pechiney.

'I would be shocked if they didn't have a big Airbus deal. They have the facilities in France to do this.'

On Wednesday, Alcan shares closed up 74 cents to C$88.47 on the Toronto Stock Exchange, with a 52-week high and low of C$94.25 and C$41.78.

The company's shares hit the new high on May 28 as speculation mounted about a possible bid by Anglo-Australian mining company Rio Tinto PLC [NYSE:RTP].

Other reports have said Norsk Hydro ASA of Norway [NYSE:NHY] was preparing a US$30-billion-plus proposal.

Bear Stearns analyst Anthony Rizzuto Jr. downgraded Alcan's shares Tuesday, saying the company is unlikely to attract a bidder to rival Alcoa.

Rizzuto said Alcan could make a counteroffer for Alcoa, with a greater mix of stock versus cash. He said Alcan could make a US$50 per share offer for Alcoa and still boost per share earnings next year.

Aluminum aviation products have lost some popularity in recent years as the industry shifts to high-technology plastic-based composite materials that promise to reduce weight.

In the Airbus announcement, Alcan's aerospace and transport operations president Jean-Philippe Cael was positive about aluminum's future in airframes despite a growing focus on the use of lighter composite materials for the manufacture of wings and fuselage.

'We believe that new alloys, combined with innovative design and joining techniques, will ensure that aluminum applications remain competitive for aerospace structures in the foreseeable future,' Cael said.

Navasota begins drilling AMIG project in West Africa

2007-06-13 12:20 MT - News Release

Mr. James Gillis reports

NAVASOTA HAS COMMENCED DRILLING ON ITS BAUXITE PROJECT, REPUBLIC OF GUINEA, WEST AFRICA

Navasota Resources Ltd. has begun drilling on the AMIG project in the Boke bauxite belt in northwestern Guinea, West Africa. Navasota has the right to earn a 100-per-cent interest in the AMIG permit which covers 1,064 square kilometres in the prefectures of Telemele and Gaoual. Navasota has retained RSG Global Consulting of Perth, Australia, to manage the program and has contracted West African Drilling Services (WADS) to conduct air core drill testing of the bauxite plateaus.

RSG Global Consulting has recommended a first-pass air core drilling program at 300-metre-to-600-metre spacing over plateaus identified by a spectral and topographic analysis of Aster satellite imagery. That study has ranked various targets based on interpreted geomorphology, with residual bauxite plateaus ranking highest. Drilling will consist of shallow holes, 10 to 20 metres in depth, with samples collected at one-metre intervals downhole and logged.

The mineral exploration permits are situated in the Boke bauxite belt of northwestern Guinea. The Boke bauxite belt hosts the world's largest and highest-quality bauxite deposits with grades of 40 per cent to 60 per cent aluminum oxide.

The permit area is located in a very good neighbourhood, being directly surrounded by several of the world's major bauxite miners. Three refineries have been proposed for construction in the Boke belt in the next five years, all of which would be within close proximity to the AMIG permit area. As well, an existing railway line is located approximately 16 kilometres from the site. This line is apparently commercially available and runs an additional 135 kilometres to the port of Kamsar.

Post says analysts foil Alcan rumours over Hindalco

2007-06-05 07:01 MT - In the News

The Financial Post reports in its Tuesday edition aluminum industry experts are throwing cold water on the latest far-fetched rumour circling Alcan -- that it is pondering a hostile bid for India's Hindalco Industries Ltd. The Post's Peter Koven writes a published report in India said Monday that Alcan may join with India-based copper producer Sterlite Industries Ltd. to bid for Hindalco, the country's biggest producer of aluminum. The move would be part of a takeover defence against Alcoa Inc. "I find it very hard to believe that Alcan's board could convince themselves that this is the best thing for shareholders, giving up the substantial premium that's in their share price as a result of the Alcoa bid," said one analyst. While Monday's report was dismissed quickly by the investment community, it was still enough to drive Hindalco shares up on the Bombay Stock Exchange. Hindalco is a familiar name to Alcan shareholders. It recently bought the company's rolled products spinoff Novelis Inc. for $5.9-billion. That decreases the likelihood that Alcan would have any interest in buying it, experts said. Hindalco also has a major shareholder, the Aditya Birla Group, that is not seen as a likely seller.

Alcoa Named to "World's Most Ethical Companies" List by Ethisphere Magazine

MONTREAL, May 14 /CNW Telbec/ - Alcoa (NYSE:AA) was named one of the
World's Most Ethical Companies by Ethisphere Magazine, a national publication
dedicated to illuminating the important correlation between ethics and profit.
Companies were recognized for their strong leadership in ethics and
compliance, advancement of industry discourse on social and ethical issues,
and positive engagement in the communities in which they operate.
"At Alcoa, our Values guide our behavior at every level of the
organization. We are proud of this accomplishment which recognizes our
commitment to ethical leadership and corporate social responsibility," said
Alcoa Chairman and CEO Alain Belda.
Ethisphere Magazine offers insight on gaining market share and creating
sustainable competitive advantage through ethical business practices and
corporate citizenship to global Board members, CEOs, General Counsel, Chief
Ethics and Compliance Officers and institutional investors.
The editors of the magazine chose fewer than 100 companies from several
thousand organizations that they analyzed over a six-month period. "This was a
rigorous process that identified a select group of companies that were
unequalled in their industries for their commitment to ethical leadership and
corporate social responsibility. These organizations go beyond making
statements about doing business ethically; they translate those words into
action," said Alex Brigham, executive editor of Ethisphere Magazine.
The process included reviewing companies' codes of ethics, litigation and
regulatory infraction histories; evaluating investment in innovation and
sustainable business practices; looking at companies' activities to improve
corporate citizenship; studying nominations from senior executives, industry
peers, suppliers and customers; and working with consumer action groups for
feedback and rating.

About Alcoa

Alcoa is the world's leading producer and manager of primary aluminum,
fabricated aluminum and alumina facilities, and is active in all major aspects
of the industry. Alcoa serves the aerospace, automotive, packaging, building
and construction, commercial transportation and industrial markets, bringing
design, engineering, production and other capabilities of Alcoa's businesses
to customers. In addition to aluminum products and components including
flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets
Alcoa(R) wheels, fastening systems, precision and investment castings,
structures and building systems. The company has 122,000 employees in 44
countries and has been named one of the top most sustainable corporations in
the world at the World Economic Forum in Davos, Switzerland. More information
can be found at www.alcoa.com

About the Ethisphere Council

The Ethisphere Council was created in 2006 by Corpedia, a leader in risk
assessment and eLearning for ethics and compliance, the Practising Law
Institute, a non-profit organization committed to enhancing the
professionalism of attorneys and others and LexisNexis, a leading provider of
comprehensive information and business solutions; and formed with support from
such leading corporations as Deutsche Telekom, Time Warner, Dresser
Industries, Avaya and Kraft, the council is dedicated to the research,
creation, and sharing of best practices in ethics, compliance, and corporate
governance among its membership companies. It also focuses on the development
and advancement of its members through increased efficiency, innovation,
tools, mentoring, advice, and unique career opportunities. More information on
membership can be found at http://www.ethisphere.com.

For further information: Pierre Després, Vice-President, Public and
Governmental Affairs, Alcoa Canada, (514) 904-5054, pierre.despres@alcoa.com

May 8 - Karl Moore -McGill University - What's behind Alcoa's attraction to Alcan

http://cbc.ca/calgary/media/audio/biznet/20070508M08-2INT.ram

Alcan suitor Alcoa makes hostile $73.25-per-share bid

2007-05-07 06:09 MT - News Release

Mr. Alain Belda of Alcoa reports

ALCOA TO OFFER TO ACQUIRE ALCAN FOR US$73.25 PER SHARE IN CASH AND STOCK

Alcoa Inc. will be making an offer to acquire all of the outstanding common shares of Alcan Inc. for $58.60 (U.S.) in cash and 0.4108 of a share of Alcoa common stock for each outstanding common share of Alcan. The transaction will create a premier diversified global aluminum company, with a complementary portfolio of assets and enhanced growth opportunities, and better position the combined company to build value for shareholders. Alcoa expects to begin its offer on Tuesday, May 8, 2007.

Based on Alcoa's closing stock price on May 4, 2007, the offer has a value of $73.25 (U.S.) per Alcan share or approximately $33-billion (U.S.) in enterprise value. The Alcoa offer represents a 32-per-cent premium to Alcan's average closing price on the New York Stock Exchange over the last 30 trading days and a 20-per-cent premium to Alcan's closing price on May 4, 2007, its all-time high.

Commenting on the offer, Alain J.P. Belda, chairman and chief executive officer of Alcoa, stated: "This offer follows almost two years of discussions between our companies regarding a variety of potential business combination transactions, including unsuccessful board-level discussions of a merger transaction last fall. We are very disappointed that those efforts did not result in a negotiated transaction -- a conclusion we would have strongly preferred. We believe firmly in the compelling strategic rationale behind the combination of Alcoa and Alcan and are convinced that this transaction creates substantial value for both sets of shareholders and for our customers around the world. We are therefore taking our offer directly to Alcan shareholders."

The combination of Alcoa and Alcan creates a stronger, more diverse global competitor with the scale and cost structure to be competitive over the long term within a rapidly changing industry landscape. Alcoa and Alcan will bring together a complementary portfolio of businesses and benefit from a broader talent base, enhanced research and development expertise, and shared values. The combined company will also have a better balance of growth projects. Together, Alcoa and Alcan will be better able to prioritize and execute on key expansion and modernization projects, and maximize performance improvement opportunities from sharing best practices and leveraging procurement.

The combined company will have increased financial resources to finance innovative research and development projects intended to reduce emissions of greenhouse gases, improve the efficiency of the smelting process, and pursue new technologies designed to facilitate low-cost aluminum production.

Mr. Belda said: "The combination of Alcoa and Alcan will significantly deepen an already-extensive commitment by both companies to Canada, and it will ensure that Canada remains a world leader in the mining and metals industry. The new company will have dual head offices in Montreal and New York, with strategic management functions located in each city. Montreal also will become the headquarters for our global primary products business, which will increase the size and importance of the global business headquartered in Canada."

Shareholder value creation

The combined company will have a significantly enhanced financial profile. Alcoa expects the combination to generate pretax cost synergies of approximately $1-billion (U.S.) annually once fully implemented in the third year following closing. Key sources of synergies include operational improvements in the areas of smelting and refining, overhead improvements such as sales and general administrative expense and plant costs, and procurement. The transaction is expected to be accretive to both cash flow per share and earnings per share within the first year of operation as a combined company. The combined company will generate substantial free cash flow that will enable it to rapidly reduce acquisition-related debt, while continuing to invest in growth opportunities.

On a total basis for 2006, the combined company would have had revenues of $54-billion (U.S.) and earnings before interest, taxes, depreciation and amortization (EBITDA) of $9.5-billion (U.S.), before synergies. In 2006, the combined company's alumina capacity would have been approximately 21.5 million tonnes and its aluminum capacity would have been approximately 7.8 million tonnes. In addition, the combined company would have approximately 188,000 employees in 67 countries.

"Alcoa has completed a number of large acquisitions in recent years and we have a proven track record of successfully integrating companies to generate shareholder value. We also have a history of excellent relations with employees in transitional situations and look forward to creating a 'best-in-class' management team drawing on the strengths of both companies," continued Mr. Belda.

Increased commitment to growth and investment in Canada

Mr. Belda said: "Alcoa generated more than $3-billion (U.S.) in revenues last year through its Canadian operations and employs more than 5,000 people in Canada, primarily in Quebec. Our desire to expand our existing Canadian operations is a matter of public record and the combination of the two companies will facilitate that goal."

Alcoa is committed to growing the combined company's already-substantial presence in Canada, particularly in Quebec and British Columbia. Specifically, as a result of the opportunities provided by the combination of the two companies, Alcoa intends to transfer to Montreal a number of strategic head office functions. Montreal will also become the combined company's global headquarters for primary products (bauxite, energy, alumina and aluminum), as well as for related research and development. As a stand-alone company, the primary products business would be the largest aluminum company in the world and larger than Alcan is today, with $32-billion (U.S.) in 2006 revenues and approximately 38,000 employees in 29 countries around the world, ranking among the largest businesses in Canada.

Alcoa also intends to promote new investment and greater opportunities for growth of the combined business through the responsible development of Canada's industrial base. In particular, Alcoa expects to conclude negotiations with the government of Quebec that will allow it to implement the two companies' planned investments of approximately $5-billion (U.S.), including modernizations and expansions, making it the single largest private sector investment program in Quebec's history. In British Columbia, Alcoa is committed to working with the government of British Columbia and local communities to move forward with Alcan's planned modernization of the Kitimat smelter.

Mr. Belda continued: "Alcoa will honour Alcan's commitments to the governments of Quebec and British Columbia, and the combined company will continue to pursue excellence in environmental, safety, health and technology leadership -- areas in which both our companies have achieved international and local recognition. In addition, Alcan and Alcoa have a strong tradition of commitment to local communities and we will continue that tradition as a combined company."

Alcoa has applied to list its common shares on the Toronto Stock Exchange, in addition to maintaining its listings on the New York Stock Exchange and exchanges in Australia, the United Kingdom and the other foreign exchanges on which Alcoa currently trades.

Competition clearance

The transaction is subject to review by antitrust authorities in various jurisdictions, including the United States, Canada, the European Union, Australia and Brazil. It also requires foreign investment clearance in Canada, France and Australia.

"With the changing dynamics of our industry over the past decade, we firmly believe that a combination of the two companies will enhance our future competitiveness against increasingly formidable competitors from around the world. During our discussions with Alcan last fall, we explored the regulatory implications of a combination of the two companies and our ability to address any potential issues a regulator might raise. We believe that any antitrust issues raised by an Alcoa-Alcan combination can be solved through targeted divestitures and by proactively working with regulators to address competitive concerns. We plan to move expeditiously to address these issues in order to close this transaction at the earliest possible date," said Mr. Belda.

Alcoa is targeting completion of the transaction by the end of 2007.

Details of the offer

The complete terms, conditions and other details of the offer are set forth in the offering documents that Alcoa expects to file today with the United States Securities and Exchange Commission and with Canadian securities regulatory authorities.

The offer and withdrawal rights are scheduled to expire at 5 p.m. ET on July 10, 2007, subject to extension. The offer will be subject to a number of customary conditions, including there having been tendered in the offer at least 66-2/3 per cent of Alcan's common shares on a fully diluted basis, receipt of all applicable regulatory approvals, and the absence of material adverse effects.

Alcoa has received a commitment letter from Citi, Goldman Sachs Credit Partners LP and Goldman Sachs Canada Credit Partners Co. to fully finance the proposed transaction. Skadden, Arps, Slate, Meagher & Flom LLP, Stikeman Elliott LLP, and Cleary Gottlieb Steen and Hamilton LLP are acting as legal counsel to Alcoa. Citi, Goldman, Sachs & Co., BMO Capital Markets, and Lehman Brothers are acting as financial advisers.

Following is a copy of the letter Alcoa sent to Alcan this morning with respect to its offer.

QUOTE

May 7, 2007

Mr. Richard B. Evans

President and chief executive officer

Alcan Inc.

1188 Sherbrooke St. West

Montreal, Que., H3A 3G2

Canada

Dear Dick:

Last fall we worked together to reach a mutually acceptable merger transaction, and I am disappointed our conversations did not lead to an Alcoa-Alcan combination. The significant financial benefits of that combination, together with the rapidly changing competitive profile of our increasingly global industry, made it compelling that we explore such a transaction. I would have preferred to pursue a negotiated transaction, and continue to feel strongly about the merits of a combination. I have reviewed with my board the proposed transaction, and it has authorized me to take our offer directly to your shareholders.

Today, we are announcing that we will be making an offer to acquire all of the outstanding common shares of Alcan Inc., for 58.60 (U.S.) in cash and 0.4108 of a share of Alcoa common stock for each outstanding common share of Alcan. Based on Alcoa's closing stock price on Friday, May 4, 2007, the offer has a value of $73.25 (U.S.) per Alcan share or approximately $33-billion in enterprise value. Our offer represents a 32-per-cent premium to Alcan's average closing price on the NYSE over the last 30 trading days and a 20-per-cent premium to Alcan's closing price on May 4, 2007. We expect to formally commence our offer tomorrow, and I am enclosing a copy of the press release announcing that offer.

Let me briefly reiterate the compelling strategic rationale for the combination which we discussed:

* The combination of our two companies will create a global company with the scale and cost structure to be competitive in the primary aluminum business, aluminum fabricating, and related and diversified businesses.
* Our combined company will have a larger capital base and increased combined cash flow that will enable it to invest to meet future significant increases in demand for aluminum products throughout the world.
* Our combined company will have substantially lower costs, which will contribute to its increased financial resources to fund innovative research and development projects intended to reduce emissions of greenhouse gases, improve the efficiency of the smelting process, and pursue new technologies designed to facilitate low-cost aluminum production.
* Our combined company will employ Alcoa's and Alcan's superior existing technological and project management capabilities to modernize and develop new facilities in an enhanced cost-effective manner.

I expect the combination to generate pretax annual cost synergies of approximately $1-billion (U.S.) once fully implemented in the third year after closing, and I expect the transaction to be accretive to both cash flow and earnings per share within the first year of operations as a combined company.

You are aware of our significant commitment to Canada, which I emphasized in our discussions last year. Following completion of this combination, we intend to expand that commitment with more investment, a stronger research and development presence, new jobs and more value creation. We will maintain dual headquarters in Montreal and New York, and locate strategic corporate leaders in both cities. We also plan to have significant Canadian representation on the new company's board. Montreal will become home to the largest aluminum company in the world, because it will be the global headquarters for the combined company's primary metals, bauxite and alumina operations, with more than $32-billion (U.S.) in annual revenue. We will also move our primary metals research and development to Quebec, and pilot our postcarbon (inert anode) technology at a smelter in the province. I do not believe any other company can make such a significant commitment to Montreal, Canada and Quebec.

During our discussions with you last fall, we explored the regulatory implications of a combination of the two companies and our ability to address any potential issues a regulator might raise. At that time, we both believed that any antitrust issues raised by an Alcoa-Alcan combination could be solved through targeted divestitures and by working with regulators to address competitive concerns. We have already engaged some regulators on a preliminary basis and plan to move expeditiously to address these issues in order to close this transaction at the earliest possible date.

As we have discussed, putting our two companies together is both strategically and financially compelling. We are a natural partner for Alcan, and we have a long history of welcoming and successfully integrating our acquisition partners and their employees. Our proposal represents significant immediate value to your shareholders, as well as the opportunity to participate in the future upside potential of the combined company.

I know that you and your board will consider what's best for your company and its employees. In doing so, I hope you will also consider the uncertainty that will be created by a protracted contest and recognize that Alcoa and Alcan are the best partners to better compete in the industry today.

For those reasons, we have not decided on this course of action lightly. I would have preferred our previous negotiations to have reached a successful conclusion; however, given our prior experience, I did not see an option other than to present this combination directly to your shareholders.

It is my hope that you will examine our offer with the same logic and openness that prevailed in the meetings that took place last fall with you, Yves Fortier, Frank Thomas and me.

With best regards,

Alain

END QUOTE

Analyst/investor conference call/webcast

Alcoa will be discussing the proposed transaction with analysts and investors on a conference call at 9 a.m. ET today. The conference call can be accessed by dialling 888-321-3075 (United States dial-in) or 973-582-2855 (Canadian and international dial-in), conference code 8769323. Accompanying slides will be available on the Alcoa website. The company will also webcast the call to all interested parties on its website. Please see the website for details on how to access the webcast.

A replay of the conference call will be available and can be accessed in the United States by dialling 877-519-4471, conference code 8769323. Canadian and international callers can access the replay by dialling 973-341-3080, conference code 8769323. The webcast will also be archived on the Alcoa website.

Press conference

Alcoa's chairman and chief executive officer, Alain Belda, will host a presentation to the media today, May 7, 2007, at 11:30 a.m. ET, at the Omni Hotel, Pierre-de-Coubertin Room, 1050 Sherbrooke West, Montreal, Que. The company will webcast the press conference to all interested parties through its website. A live broadcast feed of the press conference will be available on Monday, May 7, 2007, between 11:30 a.m. and 12:30 p.m. ET. The replay will be available from 2 p.m. to 3 p.m. ET.

Busy place that middle east

Alcan plans 'mine-to-metal' project in Saudia Arabia
Cheap energy the draw in $7-billion joint venture

Millie Munshi
Bloomberg News

Tuesday, May 01, 2007

Alcan Inc., the world's second-largest aluminum producer, plans to build a $7-billion "mine-to-

metal" project in Saudi Arabia with government-owned Ma'aden to take advantage of domestic raw materials and cheap energy.

Ma'aden is based in Riyadh, Saudi Arabia.

The venture will include a bauxite mine, alumina refinery, power plant and aluminum smelter, Montreal-based Alcan said Monday in a statement. It will have an initial annual capacity to produce 720,000 tonnes of aluminum. Mining company Ma'aden will have 51 per cent of the project and Alcan will hold the rest.

Alcan is spending on projects in the Middle East to increase aluminum output in countries that offer cheaper energy supplies. Electricity can account for about 30 per cent of the cost of production. The price of aluminum has doubled in the past four years. The Saudi smelter can be expanded to make as much as 2.1 million tonnes a year, Alcan said.

"This world-class project has an ideal combination of competitive energy resources, local bauxite, well-developed infrastructure and favourable

logistics," Alcan chief executive officer Richard Evans said in the statement. "This project has the potential to achieve one of the lowest operating costs in the industry."

Alcan shares have gained 16 per cent from a year ago. The company has a 20-per-cent interest in the Sohar smelter in Oman.

BAUXITE RESERVE

The project includes a 81-hectare, million-tonne bauxite reserve in Az Zabirah in northern Saudi Arabia, representing a potential 30 years of mining. It also has an alumina refinery with an annual capacity of 1.4 million tonnes and a 1,400 megawatt power plant.

The alumina plant, the power generator and the smelter will be in Ras Az Zawr on the east coast of Saudi Arabia. Metal production is scheduled to start in 2011, Alcan said.

The next steps for the project include completing the joint-venture agreement and pursuing financing for capital costs, Alcan said.

Alcoa Inc. is the world's biggest aluminum producer.
© The Edmonton Journal 2007

Navasota acquiring Societe AMIG Mining Int'l

2007-04-30 14:56 MT - Acquisition

The TSX Venture Exchange has accepted for filing an option agreement dated Feb. 28, 2007, between Navasota Resources Ltd. and Societe AMIG Mining International SARL. Pursuant to the option, the company has been granted an option to acquire up to 100 per cent of the issued share capital of AMIG. AMIG is the legal and recorded holder of a mineral exploration permit granted by the Ministry of Mines and Geology of the Republic of Guinea on May 10, 2006, covering two contiguous areas totalling 1,064 square kilometres, located in the prefectures of Telemele and Gaoual of the Republic of Guinea, for the exploration of bauxite.

The total compensation payable by the company to AMIG is:

1. $350,000 (U.S.) cash and $2-million (U.S.) work expenditures within three years to acquire an initial 45 per cent of the issued share capital of AMIG;
2. one million company shares, together with all expenditures necessary to deliver a feasibility study, to acquire an additional 6 per cent of the issued share capital of AMIG (thereby increasing its percentage ownership of the issued share capital of AMIG from 45 per cent to 51 per cent); and
3. $15-million (U.S.) and 15 million company shares to acquire all remaining issued shares of AMIG, exercisable at any time after it has acquired the initial 45 per cent of the issued share capital of AMIG.

For further details, please refer to the company's press release dated March 15, 2007, available on SEDAR.

http://www.resourceinvestor.com/pebble.asp?relid=31146

Chalco Will Not Raise Alumina Prices in Q2

By Interfax-China 17 Apr 2007 at 08:06 AM GMT-04:00

SHANGHAI (Interfax-China) -- The Aluminium Corporation of China Ltd. (Chalco) has announced it will not further raise alumina prices in the second quarter of this year, Chalco Vice President Liu Xiangmin told Interfax yesterday.

Chalco's alumina price will remain at RMB 3,900 ($505.18) per tonne during the second quarter of this year, Liu said.
On March 21, Chalco raised alumina prices for the second time this year to RMB 3,900 ($505.18) per tonne, up 8.3% from the previous 50% rise on Feb. 1 to RMB 3,600 ($466.32). The current domestic alumina cash price is RMB 3,800 ($492.22) per tonne.

Alumina cash price in the domestic market will remain at approximately RMB 4,000 ($518.13) per tonne in the second quarter of 2007, according to Liu. An alumina market price higher than RMB 4,000 ($518.13) per tonne is not welcomed by domestic aluminium smelters, many aluminium smelters halted production last year due to high alumina prices. Chalco subsidiaries are less affected as they can self-supply at lower rates, Liu said.

Many aluminium smelters resumed or expanded production in the second half of last year as alumina prices fell, this resulted in increased fixed-asset investment in the aluminium smelting sector in the first two months of this year, up 124.2% compared with the same period last year. However, the recently imposed export restricting policies have resulted domestic market oversupply and low prices, weighing pressure on domestic aluminium smelters.

Chalco is currently set to list on the A-share market in two weeks, pending possible approval today from the China Security Regulatory Commission (CSRC), Liu added.

After completing the A-share listing, Chalco will acquire three aluminium smelters currently owned by its parent Chinalco, including Liancheng Aluminium Co. Ltd. in Guansu Province, Tongchuan Xinguang Aluminium Co. Ltd. in Sha'anxi Province and aluminium assets from Inner Mongolia Baotou Aluminium Co. Ltd., according to a statement released by Chalco last Friday.

Liu commented that Chalco’s overseas projects are developing well, including the Aurukun Bauxite Project in Australia, the Daknong Bauxite Mine Project in Vietnam, the Bauxite Project in Guinea and a joint venture with CVRD to construct a 1.8 million-tonne alumina refinery in Brazil.

Chalco will start construction of its Aurukun Bauxite Project after gaining consent from local aboriginal authorities, Liu said. Chalco signed the final agreement to develop the bauxite mine with the Queensland Government on March 23, 2007. The project has a construction cost of AUD 3 billion ($2.5 billion) and is designed to extract 7.5 million tonnes of bauxite and refine 2.1 million tonnes alumina per annum.

Chalco aims to complete prospecting work on its Guinea bauxite mine project within 3 years of the launch last May. Chalco obtained permission in November 2005 to carry out geological surveys of Guinean bauxite reserves in the prefectures of Mamou, Kindia, Dalaba and Pita, an area of about 13,000 square kilometers.

The alumina refinery joint venture in Brazil is still in the discussion stage, a final project plan has not yet been decided upon, according to Liu.

Aluminium futures settled marginally up on the Shanghai Futures Exchange on Tuesday at RMB 19,840 ($2,565), as the rising output of alumina and electrolytic aluminium offset the decline in imports, said analyst Shi.

China is also likely to reduce tax rebates for aluminium products, according to officials, but the timetable has not yet been set.

Analysts expect prices to move within a confined range, under pressure from current supply.

© Interfax-China 2007.

Alcan Plans to Sell Stake in Utkal Alumina

By The Canadian Press
13 Apr 2007 at 06:00 AM GMT-04:00

MONTREAL (CP) -- Canadian metals giant Alcan Inc. [TSX:AL] says it plans to sell its 45% stake in India's Utkal Alumina International Ltd., a joint venture set up in 1992 to develop a new bauxite mine and alumina refinery in the Indian state of Orissa.

Alcan said it expects the sale to close in the second quarter, but did not say how much it expects to generate from the proposed transaction.

It also did not disclose the potential buyer.

The company said it is selling its stake because as a minority partner it feels limited in the key decisions on the project. Hindalco, part of Indian industrial giant Aditya Birla group, holds the controlling 55% interest in Utkal.

Earlier this year, Hindalco struck a $6 billion friendly takeover deal to acquire Alcan spinoff Novelis Inc. [TSX:NVL]

''We have carefully weighed the opportunity and risk presented by the Utkal project and, given constraints within the governance structure that limit Alcan's ability to participate in key decisions, believe that we have acted in the best interests of all our stakeholders.'' said Jacynthe Cote, president and CEO of the company's bauxite and alumina division.

''The company will keep a strong focus on growing and executing its pipeline of projects in bauxite-rich regions, which will leverage its world-leading alumina refining technology.''

The Utkal project, currently in an engineering phase, will continue to receive Alcan technology, the company said.

Bauxite is the key mineral used in aluminum production. It is mined from the earth then processed into alumina powder, which is used along with electricity and heat in the smelting process to produce light-weight aluminum metal.

Alcan employs 68,000 employees, including its joint-ventures, and operates in 61 countries and regions. The company had revenues of $23.6 billion in 2006.

Hindalco of Mumbai, plans to pay $44.93 a share cash for all of Novelis stock and assume $2.4 billion of debt in a friendly deal that would make Hindalco the largest rolled-aluminum products manufacturer in the world.

Hindalco is the flagship company of the Aditya Birla Group with interests in cement, metals, telecommunication and textiles.

In Thursday trading on the Toronto Stock Exchange, Alcan shares fell nine cents to close at C$61.85 on a volume of more than 736,000 shares.

New high for NAV ...

China to Restrict Investment in Aluminium Smelting Sector

http://www.resourceinvestor.com/pebble.asp?relid=30791

There is also a new wave of hot-rolling lines being constructed in the aluminium processing sector,
indicating that current aluminium product production is still low.

Aluminium futures also settled higher on spill over strength from today's strong copper market,
with the most traded July contract settling RMB70 ($9.06) higher at RMB 19,880 ($2,573.43) a tonne.

Orbite contractor can extract 20% of alumina from clay

2007-01-31 09:21 MT - News Release

Mr. Richard Boudreault reports

GRANDE-VALLEE: PRELIMINARY RESULTS IN THE ALUMINA EXTRACTION PROCESS DEVELOPED BY THE CEPROCQ

Centre d'etudes des procedes chimiques du Quebec (CEPROCQ) is completing on schedule the laboratory phase in the development of an alumina extraction process for Orbite VSPA Inc.'s Grande-Vallee deposit. Orbite presents performance preliminary results stemming from this phase.

An early result from the development process obtained from laboratory experiments indicates that a ratio of around 20 per cent of alumina by mass can be extracted from the raw Grande-Vallee clay. The raw clay contains approximately 24 per cent of alumina at the onset. The specialty alumina purity at the 20-per-cent extraction ratio is 99.99 per cent. A purity of better than 99.999 per cent can be obtained if a trade-off with the extraction ratio is applied. Such levels of purity are compatible with products that can be used in fabricating specialty optical fibres, optical glasses or orthopedic replacement joints; they represent high margins potential for Orbite. The CEPROCQ processes also generate as a side benefit ionic aluminum and ionic iron which have markets of their own right.

According to Dr. Serge Alex, principal scientist at CEPROCQ, "The technology strategy used has lead the development of an extraction process with very interesting potential of economic viability for the level of quality sought."

According to the National Instrument 43-101, Orbite must state that no prefeasibility or feasibility analyses have yet been produced using these results.

About CEPROCQ

CEPROCQ is a technology transfer centre located in Montreal whose mission is to support companies involved in chemistry and related sectors. Since its inception in 1997, CEPROCQ has been involved, among other areas, in the field of mineral extraction, a sector in which it has successfully developed a number of original technologies. Moreover, CEPROCQ and IPC (Institute for chemistry and petro-chemistry) was recently awarded with a $4.8-million facility expansion grant from Minister Raymond Bachand as part of the new Quebec science and technology policy.

Iamgold completes bauxite asset sale

2007-03-21 08:52 MT - News Release

Mr. Joseph Conway reports

IAMGOLD COMPLETES BAUXITE SALE

Iamgold Corp. has closed the sale of Iamgold's interest in Omai Bauxite Mining Inc. and Omai Services Inc. to Bosai Minerals Group Co. Ltd., pursuant to a share purchase agreement originally reported in Stockwatch on Dec. 19, 2006. Cash proceeds of $28.5-million have been paid to Iamgold. In addition, the transaction results in a reduction of the company's third party debt by $17.7-million.

"We are pleased that the sale of the Bauxite assets has been completed. This transaction supports Iamgold's focus and commitment to maximize shareholder value," stated Joseph Conway, president and chief executive officer of Iamgold. "We will continue to optimize our portfolio to unlock the potential of our asset base."

Navasota to acquire La Societe AMIG for bauxite permit

2007-03-15 14:11 MT - News Release

Mr. James Gillis reports

NAVASOTA OPTIONS BAUXITE EXPLORATION PROJECT, REPUBLIC OF GUINEA, WEST AFRICA AND ANNOUNCES FINANCING

Navasota Resources Ltd. has concluded a formal option agreement dated Feb. 28, 2007, with La Societe AMIG Mining International SARL (AMIG) and its shareholders to earn and acquire up to 100 per cent of the issued share capital of AMIG. AMIG is a Guinean corporation and its shareholders are residents of Conakry, Guinea, West Africa, and are at arm's length to Navasota.

AMIG is the legal and recorded holder of a mineral exploration permit granted by the Ministry of Mines and Geology of the Republic of Guinea on May 10, 2006, covering two contiguous areas totalling 1,064 square kilometres, located in the prefectures of Telemele and Gaoual, for the exploration of bauxite.

Under the terms of the option agreement, Navasota has been granted an option to acquire an initial 45 per cent of the issued share capital of AMIG by incurring a minimum total of $2-million (U.S.) in expenditures on the project and by paying $350,000 (U.S.) to the AMIG shareholders, within a period of three years.

Once Navasota has exercised such option and thereby acquired 45 per cent of the issued share capital of AMIG, Navasota has the further option to elect to earn and acquire an additional 6 per cent of the issued share capital of AMIG (thereby increasing its percentage ownership of the issued share capital of AMIG from 45 per cent to 51 per cent). To exercise such further option, Navasota must incur all exploration and development expenditures necessary to complete and deliver to AMIG a bankable feasibility study in respect of the project and must issue one million of its common shares to the shareholders of AMIG.

Additionally, at any time after it has acquired 45 per cent of the issued share capital of AMIG, Navasota may elect to acquire all remaining issued shares of AMIG (thereby increasing its percentage ownership of the issued share capital of AMIG to 100 per cent) by paying $15-million (U.S.) and issuing 15 million of its common shares to the shareholders of AMIG.

The mineral exploration permit held by AMIG covers 1,064 square kilometres situated in the Boke bauxite belt of northwest Guinea. The Boke bauxite belt hosts the world's largest and highest quality bauxite deposits with grades of 40 per cent to 60 per cent aluminum oxide.

During a site visit undertaken in November, 2006, on behalf of Navasota, RSG Global Consulting determined that there are significant bauxitic plateaus within the permit area. Seven bauxitic laterite samples collected from two sites visited (Madina Diang and Kembera) were sent to SGS Lakefield in South Africa for analysis by XRF. Results are listed in the table below.

 
  
    BAUXITE GRAB SAMPLES 
  
 Sample ID    Al2O3     SiO2 
  
 NAVAMIG001    52.8%    1.69% 
 NAVAMIG002    48.6%    1.26% 
 NAVAMIG003    50.5%    0.67% 
 NAVAMIG004    41.4%    0.97% 
 NAVAMIG005    47.7%    0.75% 
 NAVAMIG006    53.7%    2.25% 
 NAVAMIG007    20.9%   27.00%