Base shares soar as Kwale gets equity exemption
PERTH (miningweekly.com) - Mineral sands developer Base Resources on Friday saw a 34% spike in its share prices after the company announced that its Kwale project, in Kenya, would be exempt from a 35% local equity participation regulation.
Base said in a statement to the market that it had received advice from the Kenyan Attorney General that the regulations could only be applied to mining licences issued after the regulations came into force in October of last year.
This corroborated legal advice previously received by the company.
However, Base said that, notwithstanding the information, the company would continue to work constructively with the Kenyan government to facilitate greater equity participation over time, in both Base and the mining industry in general.
The Kwale project, which would produce some 4.7-million tons of final product over a 13-year life-of-mine, was currently on schedule for practical completion in the September quarter of 2013.
Base shares were trading at a high of 36c a share on Friday, up from a low of 32.5c a share.
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