22nd Nov 2019 15:45
(Alliance News) - Base Resources Ltd on Friday said it is in talks and is hoping to resolve issues in Madagascar after the government forced it to halt its Tolaira mineral sand project work.
"The company will continue to engage in transparent and respectful dialogue with the Government of Madagascar to deepen its understanding of the significant benefits of the project. We hope to secure agreement in a timely manner on mutually beneficial and sustainable fiscal terms on which the Toliara project may proceed to development," said Base Resources Non-Executive Chair Keith Spence.
Speaking at Base's annual general meeting, Spence said work on the Toloara definitive feasibility study began in the year and is on track to complete in December, ahead of a construction decision planned for 2020. Financing agreements are progressing in parallel with the study and, if all goes as planned, Toilara should be in operation by 2020.
Elsewhere, the chair said, its Kwale mineral sands operation in Kenya is "continuing to deliver", with Base Resources' goal being to extend its mine life.
"Medium and long-term dynamics for our products continue to be encouraging, with strong global demand and restricted supply. These market conditions supported steady price improvement for rutile and ilmenite throughout the year, while zircon prices stabilised following prior increases. In the longer term, anticipated structural supply shortfalls for all our products require new projects to be developed in the coming years and present exciting strategic opportunities for Base Resources as an established and experienced mineral sands producer," said Spence.
Separately, Base Resources said Bank of America Corp has cut its base Resouces voting power by 37.5 million shares and now holds a stake of less than 3% in the company, meaning Bank of America is no longer a significant shareholders. This was due to the borrowing and return of shares under a prime brokerage agreement as well as acquisitions and disposals.
Bank of America disposed of 20.0 million Base Resouces shares at an average price of AUD0.220, about GBP0.12, each on November 19 and acquired 6.1 million shares at AUD0.235 per share from October 16 to Wednesday this week.
Shares in Base Resources were up 3.5% at 11.90 pence in London on Friday.
By Anna Farley; [email protected]
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