Sales Agreement - Force Majeure Notice Received

BASE RESOURCES LIMITED - Sales Agreement - Force Majeure Notice Received

PR Newswire

London, January 13

AIM and Media Release 

13 January 2016

BASE RESOURCES LIMITEDSales Agreement - Force Majeure Notice Received

Base Resources Limited (ASX & AIM: BSE) (“Base” or the “Company”) advises that it has received a force majeure notice from a counterparty to an ilmenite sales agreement (“Agreement”) seeking to suspend the counterparty’s obligations under the Agreement (“Notice”). The Notice is stated to be in response to incidents that have occurred causing significant delays in commissioning the counterparty’s slag furnace. The Notice, while providing a preliminary assessment of the extent of the damage caused by the incidents, advises that repairs, further damage assessment and rectification works will be required and that therefore the potential delay is not yet known.

Base is continuing to assess the potential impacts of the Notice, including the Company’s rights. Pursuant to the terms of the Agreement, absent the Notice, the counterparty was due to purchase approximately 100,000 tonnes of ilmenite by 30 June 2016 at an average price of approximately US$116 per tonne FOB, which represented a significant premium to current market prices. The 100,000 tonne per annum Agreement applies for a further three years from 1 February 2016.

While Base reserves its rights in respect of the Notice, the counterparty has committed to working with the Company to seek to mitigate the potential impact of the Notice. In the meantime, the Company will also explore all available options for selling the ilmenite concerned to other customers.

A PDF version of this release is available from http://www.asx.com.au/ and on the Company’s website: http://www.baseresources.com.au/.

ENDS

CORPORATE PROFILEDirectorsKeith Spence (Non-Executive Chairman)Tim Carstens (Managing Director)Colin Bwye (Executive Director)Sam Willis (Non-Executive Director)Michael Anderson (Non-Executive Director)Michael Stirzaker (Non-Executive Director)Malcolm Macpherson (Non-Executive Director)Company SecretaryChadwick PolettiNOMINATED ADVISOR & BROKERRFC Ambrian LimitedAs Nominated Adviser:Andrew Thomson / Stephen AllenPhone: +61 (0)8 9480 2500As Broker:Jonathan WilliamsPhone: +44 20 3440 6800SHARE REGISTRY: ASXComputershare Investor Services Pty LimitedLevel 11, 172 St Georges TerracePERTH WA 6000Enquiries: 1300 850 505 / +61 (3) 9415 4000http://www.computershare.com.au/SHARE REGISTRY: AIMComputershare Investor Services PLCThe PavilionsBridgwater RoadBRISTOL BS99 6ZZEnquiries: +44 (0) 870 702 0003http://www.computershare.co.uk/AUSTRALIAN MEDIA RELATIONSCannings PurpleWarrick Hazeldine / Annette EllisEmail: [email protected] /[email protected]Phone: +61 (0)8 6314 6300UK MEDIA RELATIONSTavistock CommunicationsJos Simson / Emily FentonPhone: +44 (0) 207 920 3150KENYA MEDIA RELATIONSAfricapractice (East Africa)Evelyn Njoroge / James Njuguna/Joan KimaniPhone: +254 (0)20 239 6899Email: [email protected]PRINCIPAL & REGISTERED OFFICELevel 1, 50 Kings Park RoadWest Perth, Western Australia, 6005Email: [email protected]Phone: +61 (0)8 9413 7400Fax: +61 (0)8 9322 8912