Base adjusts its balance sheet with project debt retired

BASE Resources has said it pleased to repay the outstanding balance of the US$215 million Kwale project debt facility, though the debt’s replacement with a revolving credit facility increased by $45 million has seen little immediate reaction from the market.
Base adjusts its balance sheet with project debt retired Base adjusts its balance sheet with project debt retired Base adjusts its balance sheet with project debt retired Base adjusts its balance sheet with project debt retired Base adjusts its balance sheet with project debt retired

Base reported net debt at June 30 had been reduced by $27.6 million in that quarter to $33.2 million.

Base claimed early repayment of the project debt facility "demonstrates the continued strong performance of Kwale operations and, together with the increased RCF, provides the group with additional funding flexibility and reduced debt servicing costs".

Base pointed out changes that see Base Titanium as the owner of Kwale and sole borrower, "ensure maximum flexibility for the proposed development funding of the Toliara project". 

The rejig comes little more than a month after Base saying it had repaid US$65 million over the previous 12 months and expected net to be retired by the end of the year.               

Base completed the acquisition of Toliara on Madagascar in January, with a prefeasibility study due to be completed in January and definitive feasibility study in the third quarter of 2019.

The project cost an initial $75 million, with an additional $17 million to be paid upon milestones.

Shares in Base were unchanged in late trade at 26.5c, capitalising the company at $297 million.

When the-then indebted miner was under existential pressure around three year ago, the stock was at 3-4c. 

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