Base Resources Ltd has reached agreement with World Titane Holdings Ltd (World Titane) whereby Base Resources will acquire an initial 85% interest in the wholly owned Mauritian subsidiaries of World Titane, which between them hold a 100% interest in the Toliara sands project in Madagascar (held through wholly owned subsidiaries in Madagascar).
This acquisition is conditional only on Base Resources completing an equity raising for a minimum of AUS$80 million to partially fund the acquisition costs.
The Toliara sands project is considered by Base Resources to be one of the best mineral sands development projects in the world. It is underpinned by the Ranobe deposit, which has a JORC 2012 Resource of 857 million t at 6.2% heavy mineral, including 612 million t at 6.7% heavy mineral in the Measured and Indicated Categories.
Building on the work completed to date, Base Resources’ development plan is to complete a full study phase ahead of a decision to proceed to construction in 2H19. This timetable could be expected to see the Toliara sands project in production in mid-2021.
Tim Carstens, Managing Director of Base Resources, commented: “World Titane (the successor to the formerly ASX-listed World Titanium Resources Ltd) has invested significantly in progression of the Toliara sands project over a number of years, establishing a world-class Mineral Resource, advancing development studies and securing key permits and licenses. World Titane has also successfully fostered strong relationships with the government of Madagascar and the local community. The majority shareholders in World Titane, AMED Funds and Boulle Titanium, who have been instrumental in the recent project progression, have committed their ongoing support to the project to ensure a continued smooth progression to mine development. This is a transformational acquisition for Base Resources and represents a significant step in execution of the company’s strategic plan.”
Carlo Baravalle of AMED Funds, and Chairman of World Titane commented: “We are very pleased to have concluded this transaction with Base Resources, an accomplished mineral sands mining company with an excellent track record of successful project development in Africa. Working closely with local stakeholders and government during the past couple of years, during a particularly challenging period for mineral sands, World Titane, with the support of AMED Funds and Boulle Titanium, have significantly progressed the project. We are proud to be able to introduce Base Resources to now drive the Toliara Sands Project towards construction.”
Jean-Raymond Boulle of Boulle Titanium added: “We would like to thank the government of Madagascar for their unwavering support during the initial exploration and development phase of the project and we look forward to continuing to work closely with all the authorities in Madagascar, and Base Resource, in the further development of the project.”
To fund the US$75 million initial consideration, Base Resources is seeking to raise AUS$100 million through a combined share placement to institutional investors in eligible jurisdictions and a 1 for 3 accelerated pro rata renounceable entitlements offer (Offer). All shares will be offered at AUS$0.255 per share (Offer Price). The Offer has been partially underwritten by RFC Ambrian Ltd subject to the terms and conditions of an offer management and underwriting agreement to a cap of approximately AUS$88.4 million.