Base Resources to acquire majority of Toliara Sands Project

Base Resources has reached agreement with World Titane Holdings to 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, it announced on Tuesday.

The AIM-traded company said the acquisition remained conditional only on Base Resources completing an equity raising for a minimum of AUD 80m to partially fund the acquisition costs.

It said it considered the Toliara Sands Project to be one of the best mineral sands development projects in the world, underpinned by the Ranobe deposit which has a JORC 2012 resource of 857 million tonnes at 6.2% heavy mineral, including 612 million tonnes at 6.7% heavy mineral in the measured and indicated categories.

Building on the work completed to date, Base Resources’ development plan would be to complete a full study phase ahead of a decision to proceed to construction in the second half of calendar 2019.

The company said the timetable could be expected to see the Toliara Sands Project in production in mid-2021.

“World Titane - the successor to the formerly ASX-listed World Titanium Resources - 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,” said managing director of Base Resources, Tim Carstens.

“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.”

Carstens said it would be a “transformational acquisition” for Base Resources, representing a significant step in the execution of the company’s strategic plan.