Base signs off-take agreement for Kwale

Base Resources has signed a key off-take agreement with Dupont Titanium Technologies for mineral sands produced from its flagship Kwale project in Kenya.

Base said the off-take agreement would cover approximately 72 per cent of annual rutile production from Kwale for six years following commencement of production.

Also, Base said it had the option to sell an additional 25,000 tonnes of rutile per year over the contract period.

Dupont is the largest producer of titanium dioxide pigment globally, and is in the midst of expanding its processing facilities at Altamira, Mexico.

Base managing director Tim Carstens said the offtake agreement was a very significant milestone for the project, as it would underpin around 35 per cent of Kwale’s annual revenue, or up to 47 per cent, if the additional rutile is supplied.

“That DuPont has committed to a long-term supply agreement with Base is recognition of our business model and is a relationship of which we are proud,” Mr Carstens said in a statement.

“Reflecting the positive market dynamics for mineral sands producers, Base is making good progress in assembling a portfolio of off-take arrangements for the production from Kwale.

“Further announcements in this respect are expected in the coming months as several agreements currently under negotiation are finalised.”

The off-take agreement follows yesterday’s announcement that Base had finalised a $US170 million funding facility for Kwale’s development.

AT 10:00AM (WST), Base Resources shares were up 1 per cent, at 50 cents.