Base Resources Limited Extension of the Taurus Facility

 
TIDMBSE 
 
AIM and Media Release 
 
31 October 2016 
 
BASE RESOURCES LIMITED 
Extension of the Taurus Facility 
 
Base Resources Limited (ASX & AIM: BSE) ("Base Resources" or the "Company") is 
pleased to advise that it has extended the maturity date of the fully drawn 
US$20 million unsecured debt facility provided by one of its major 
shareholders, Taurus Funds Management ("Taurus") ("Taurus Facility"), from 31 
December 2016 to 30 September 2017. 
 
The Taurus Facility was established in December 2014, and is held by the parent 
company, Base Resources.  Prior to final maturity, under the terms of the 
Taurus Facility, repayments are only required to be made from the surplus cash 
distributions ("Cash Sweeps") of the Kwale Operations to Base Resources, as 
permitted by the Kwale Project Debt Facility.  These Cash Sweeps, if permitted, 
occur six-monthly with the first taking place in July 2016 for US$5.4 million. 
Following the Cash Sweep, a mandatory 50% of which was applied towards 
progressive repayment of the Taurus facility, the amount currently outstanding 
under the Taurus Facility is US$17.3 million. 
 
The extension of the Taurus Facility final maturity date allows additional 
repayments to be made from two further potential Cash Sweeps in January and 
July 2017, and removes the need to secure external funding to repay the balance 
that would otherwise have been due on 31 December 2016.  With the continuing 
improvement in ilmenite prices experienced since July 2016, and the positive 
outlook for rutile prices over the coming period, it is anticipated that the 
Taurus Facility can be substantially repaid from Cash Sweeps prior to the 
extended maturity date. 
 
As part of the extension, the mandatory proportion of Cash Sweeps to be applied 
toward progressive repayment of the Taurus Facility has increased from 50% to 
75%.  All other terms of the Taurus Facility remain unchanged, including the 
interest rate of 10% on the outstanding balance.  As consideration for the 
extension, Base Resources will issue Taurus 10 million fully paid ordinary 
shares ("Consideration Shares").  The issue of the Consideration Shares will 
not require shareholder approval. 
 
The total number of fully paid ordinary shares in Base Resources on issue 
following the issue of the Consideration Shares is 742,231,956, and Base 
Resources advises that Taurus will consequently increase its interest in fully 
paid ordinary shares in Base Resources from approximately 14.3% to 
approximately 15.5%.  Application has been made for the Consideration Shares to 
be admitted to trading on AIM, and it is expected that the Consideration Shares 
will be admitted to trading on AIM from on or around Wednesday, 2 November 
2016. 
 
ENDS. 
 
CORPORATE PROFILE 
 
Directors 
Keith Spence (Non-Executive Chairman) 
Tim Carstens (Managing Director) 
Colin Bwye (Executive Director) 
Sam Willis (Non-Executive Director) 
Michael Anderson (Non-Executive Director) 
Michael Stirzaker (Non-Executive Director) 
Malcolm Macpherson (Non-Executive Director) 
 
Company Secretary 
Chadwick Poletti 
 
NOMINATED ADVISOR & BROKER 
RFC Ambrian Limited 
As Nominated Adviser: 
Andrew Thomson / Stephen Allen 
Phone: [phone] 
As Broker: 
Jonathan Williams 
Phone: [phone] 
 
SHARE REGISTRY:  ASX 
Computershare Investor Services Pty Limited 
Level 11, 172 St Georges Terrace 
PERTH WA 6000 
Enquiries: 1300 850 505 / [phone] 
www.computershare.com.au 
 
SHARE REGISTRY:  AIM 
Computershare Investor Services PLC 
The Pavilions 
Bridgwater Road 
BRISTOL BS99 6ZZ 
Enquiries: [phone] 
www.computershare.co.uk 
 
AUSTRALIAN MEDIA RELATIONS 
Cannings Purple 
Annette Ellis / Andrew Rowell 
Email: [e-mail] / 
[e-mail] 
Phone: [phone] 
 
UK MEDIA RELATIONS 
Tavistock Communications 
Jos Simson / Emily Fenton 
Phone: [phone] 
 
KENYA MEDIA RELATIONS 
Africapractice (East Africa) 
Evelyn Njoroge / James Njuguna/Joan Kimani 
Phone: [phone] 
Email: [e-mail] 
 
PRINCIPAL & REGISTERED OFFICE 
Level 1, 50 Kings Park Road 
West Perth, Western Australia, 6005 
Email:  [e-mail] 
Phone: [phone] 
Fax: [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

October 31, 2016 03:00 ET (07:00 GMT)