Ilmenite, Rutile and Zircon,
Investor Presentation - Acquisition and Entitlement Offer

Been trying to buy this for a while and finally got some @29c.Low and behold an annoucement about a transformational buy with a cap raise @25.5c. BSE is paying down debt fast with its great cashflow (operating margin 62%) and the sands prices are lifting into a good cycle by the looks. LOM not so great although confidence is high that will be lengthened.

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 tonnes at 6.2% heavy mineral (29 mt of Ilmenite, 2.4 mt zircon and 0,65 mtRutile)



HIGHLIGHTS



Toliara Sands Project summary:



•A large, high grade Mineral Resource of 857 million tonnes at 6.2% heavy mineral, with 612 million tonnes in the Measured and Indicated categories at 6.7% heavy mineral.



•Key permits are in place including mining lease and environmental approval. An established legislated land acquisition process is underway and scheduled for completion in mid-2018.



•Mining trials and processing test-work completed to date support a simple dry mining operation and technically straight forward process flowsheet.



•Operational simplicity, high grade and scale can be expected to produce a robust project with a first quartile revenue to cash cost ratio.



•Base Resources’ development plan should see the Toliara Sands Project in production in mid-2021.




Acquisition and share offer summary:



•Binding agreement reached under which Base Resources will:



oacquire an initial 85% interest in the world-class Toliara Sands Project in Madagascar for consideration of US$75 million; and



oacquire the remaining 15% interest, with a further US$17 million payable on achievement of key milestones as the project advances to mine development.



•A$100 million to be raised to fund the initial US$75 million consideration, through a partially underwritten share placement and accelerated pro rata renounceable entitlements offer at A$0.255 per share.



•Share offer composition:



oInstitutional placement of 143.1 million shares to raise A$36.5 million; and



o1 for 3 accelerated pro rata renounceable entitlements offer of 249.1 million shares to raise A$63.5 million.






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mineral, including 612 million tonnes at 6.7% heavy mineral in the Measured and Indicated Categories






Base Resources Limited (ASX & AIM: BSE) is a mineral sands producer, focused on the Kwale Mineral Sands Operations in Kenya, East Africa. In late 2013 the Company commenced production of ilmenite, rutile and zircon, with first export sales in early 2014.
Kwale is located 10 kilometres inland from the Kenyan coast and 50 kilometres south of Mombasa, the principal port facility for East Africa. The project was acquired by Base in 2010. Following the completion of feasibility study enhancements and financing, development of Kwale commenced in October 2011.
The Project is based on a mine life of 13 years, (a lot less now in 2017)and features a high grade ore body with a high value mineral assemblage. Kwale is a robust project, ramping up to an annual production of 80,000 tonnes of rutile, 360,000 tonnes of ilmenite and 30,000 tonnes of zircon, making Base a globally significant producer of mineral sands products.

ILU the bigger bro in this sector.