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Base Resources Secures Water Supply For Kwale Mineral Sands Processing Plant

Base Resources (ASX: BSE) has achieved a key milestone in the development of the Kwale Mineral Sands Project with the closing of the Mukurumudzi Dam as planned.

With a storage capacity of 8.5 gigalitres, the Mukurumudzi Dam is the primary water resource for the Kwale Project.

Closing the dam ahead of the impending wet season was a critical milestone in ensuring sufficient process water is available before commissioning of the processing plant.

Tim Carstens, managing director, told Proactive Investors today that the company remains fully funded and on-track for commissioning in the third quarter of 2013, followed by production in the fourth quarter of 2013.

With financing secured and key offtake arrangements in place, development of Kwale is now over 50% complete and on schedule.

The funding required to progress development through to positive cashflow (on EDFS projections) was secured in 2011.

This comprised a A$140 million equity placement to Australian, US and UK institutional investors, and a US$170 million syndicated debt facility (US$150 million primary facility and US$20 million cost overrun).

Base also secured $40 million via an underwritten share placement and entitlement offer that it completed in October last year.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.