Base Resources Ltd agreed an extension to its Kwale mining lease in Kenya and new terms for royalty payments to the Kenyan government.
Tim Carstens, Base's managing director, said: “We are pleased to have reached this agreement with the Government of Kenya.
“With the land acquisition processes proceeding to plan and nearing completion, mining is now scheduled to continue on the Kwale South Dune until December 2023.”
“With the recently released Bumamani Pre-Feasibility Study supporting further extension to Kwale mine life to mid-2024, the focus is on completing the Definitive Feasibility Study and securing the required tenure arrangements.
“Looking further ahead, we are pursuing wider exploration opportunities in both Kenya and northern Tanzania.”
Extending the mining lease boundary of licence area SML 23 means that the Kwale South Dune Ore Reserves that previously fell outside the boundary are now included, Base said.
The royalty terms change means that from 1 July 2018 to the end of SML 23, the royalty is increased to 5%.
Base said it had been providing for this and the change will mean a payment of US$18.6mln plus a US$3.2mln net charge to its accounts.