1st Apr 2020 11:51
(Alliance News) - Australian mineral sands firm Base Resources Ltd on Wednesday said it has fully drawn a USD75 million facility amid the Covid-19 pandemic.
The funding will help Base navigate the "evolving uncertainty" caused by the coronavirus, Base said.
As of February 29, Base had USD37.7 million of cash reserves and no debt. Under the terms of the facility, there are no mandatory repayments until the end of June 2021, and the final maturity date is the end of 2021.
"Supported by sound customer demand, production at the company's Kwale operation in Kenya has continued uninterrupted with broad health and safety procedures implemented to minimise the risk of Covid-19 to our personnel and surrounding communities. The company is working with government of Kenya authorities to adjust work arrangements as necessary to keep operations within government restrictions," said Base.
"However, in a rapidly evolving local and global landscape, operations continue to be maintained balancing the considerations of employee and community health, operational safety, community benefits, government policy and regulation, input availability, customer demand and financial prudence. Consequently, a halt to, or curtailment of operations at some point in the future cannot be ruled out."
Base shares were untraded on Wednesday in London, last quoted at 7.00 pence each.
By George Collard; [email protected]
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