Base adds debt to 'enhance' flexibility

MINERAL sands producer Base Resources has taken on debt of US$75 million “to secure enhanced liquidity and ensure flexibility” during the uncertain times of the COVID-19 pandemic.
Base adds debt to 'enhance' flexibility Base adds debt to 'enhance' flexibility Base adds debt to 'enhance' flexibility Base adds debt to 'enhance' flexibility Base adds debt to 'enhance' flexibility

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At the end of February the-then debt-free Base had cash of $37.7 million.

Base has to pay $25 million of the new debt by mid-2021, with the remaining $50 million due by the end of 2021.

Base said operations continue at Kwale in Kenya, though a halt or curtailment can't be ruled out given the evolving situation with regards the pandemic.

Base ended 2019 with net cash of $32.6 million after starting the year with a net position of $1 million.

Nearly $40 million was spent over the course of the year on capex at Kwale and definitive feasibility work at the Toliara asset.

The latter is a world class mineral sands opportunity in Madagascar that'll cost about A$1 billion to develop, with Base and the Madagascan government trying to come to agreement on the fiscal terms ahead of financing.

Shares in Base were unchanged at 14.5c in early trade, capitalising the company at $170 million.

The stock has halved in value over the past 12 months. 

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