Base to raise $40m for Kenya project

Base Resources has announced a plan to raise $40 million to fund development at its Kwale mineral sands project in Kenya.

Base today said it had launched a placement to institutional and sophisticated investors to raise $24.6 million, while also kicking off an entitlement offer to existing shareholders to raise $15.3 million.

Both the entitlement offer and the placement will be priced at 40 cents per share.

The offer is being underwritten by RFC Ambrian, which is also lead manager and book runner. Euroz Securities is co-lead manager to the placement and entitlement offer.

Base Resources shares last traded at 42 cents before entering a trading halt this morning.

The company forecast a total project cost of $US298 million for the Kwale project in September, around 14 per cent above the original budget.