PERTH (miningweekly.com) – Mineral sands miner Base Resources has launched a partially underwritten accelerated prorata renounceable entitlement offer to raise about A$10-million.
The company said on Monday that shareholders would be offered one new fully paid ordinary share in Base for every 3.35 shares held, with the issue priced at 6c a share.
The offer price represented a 6.2% discount to the company’s 10-day volume weighted average price and a 26.8% discount to the company’s last closing price on the ASX on February 26.
The proceeds from the entitlement offer would be used on corporate activities and would allow Base to progress its strategic plan to increase production at its Kwale project, in Kenya.
Base started exports from its Kwale mineral sands project in 2014. The mine is being ramped up to produce 80 000 t/y of rutile, 360 000 t/y of ilmenite and 30 000 t/y of zircon. An optimisation push at Kwale is expected to increase the mine’s combined ilmenite, rutile and zircon output beyond 460 000 t/y.
Edited by: Creamer Media Reporter
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