Modern Mining February 2018

MINING News

subsidiaries in Madagascar), has now been transferred to the company. Base Resources will acquire the remain- ing 15 % interest, with a further US$17 million payable on achievement of key milestones as the project advances tomine development. “The Toliara Sands project is a trans- formational acquisition and represents a significant step in execution of the company’s strategic plan,” comments Tim Carstens, Managing Director of Base Resources. “We are excited to now proceed with the development of what we consider to be one of the very best mineral sands projects in the world. The strong sup- port demonstrated by institutional and retail shareholders, as well as the Base Resources management team, through participation in the capital raising reflects a shared enthusiasm.” The Toliara Sands project is under- pinned by the Ranobe deposit which has a JORC 2012 resource of 857 Mt at 6,2 % heavy minerals in the measured and indi- cated categories. Building on the work completed to date, Base Resources’development plan is to complete a full study phase ahead of a decision to proceed to construction in the second half of calendar 2019. This time- table could be expected to see the Toliara Sands project in production in mid-2021. Base Resources’ wholly-owned sub- sidiary, Base Titanium Limited, operates the 100 %-owned Kwale Mineral Sands Operations in Kenya, which commenced production in late 2013. Kwale is located 10 km inland from the Kenyan coast and 50 km south of Mombasa, the principal port facility for East Africa. 

Base Resources, which already owns the Kwale Mineral Sands Operations in Kenya (seen here), has acquired the Toliara Sands project in Madagascar (photo: Base Resources). Toliara Sands transaction completed

Base Resources, listed on the ASX and AIM, reports that the Toliara Sands project acquisition has now been completed. With payment of the US$75 million up-front consideration by Base Resources,

the initial 85 % interest in the wholly owned Mauritian subsidiaries of World Titane Holdings, which between them hold a 100 % interest in Toliara Sands in Madagascar (held through wholly owned

Strandline secures offtake agreement ASX-listed Strandline Resources reports it has taken a major step towards bringing its first mineral sands project into produc- tion, securing a binding offtake agreement for 100 % of the zircon-monazite product which will be produced at its Fungoni min- eral sands project in Tanzania.

DFS (announced to the market in October 2017), the zircon and monazite produc- tion is expected to generate over 62 % of Fungoni’s total revenue. The remaining project revenue is expected to be from chloride ilmenite (approximately 28 %) and rutile (approxi- mately 10 %), for which offtake agreements are well advanced. Strandline says Fungoni’s high unit value orebody assemblage and low costs under- pin outstanding financial returns, with a fast payback period of 2,7 years from the start of construction and a first quartile revenue-to- cost ratio of 2,7. 

The agreement – says Strandline – is with China’s highly-respected, industry-lead- ing zircon sand and rare earth consumer, Hainan Wensheng High-Tech Materials Company Limited (Wensheng). Based on the pricing formulae contained in the agreement and otherwise using the assumptions contained in the Fungoni

14  MODERN MINING  February 2018