Mining company Base Resources (ASX:BSE) has reported steady production in zircon at its Kwale mineral sands operation in Kenya, with a further price increase of the mineral locked in for contracted March quarter sales.
Mined volume, however, was down slightly at 2.9 million tonnes, being impacted by shutdowns to allow employees to vote during the Kenyan presidential elections, and the mine was also impacted by heavy rainfall in November.
As a result of cash flow generation, the company has reduced net debt by US$21 million to US$65.6 million.
An agreement was reached this quarter to acquire the Toliara Sands project in Madagascar, with Base Resources to hold an initial 85 per cent interest before investing a further US$17 million to acquire the remaining 15 per cent.
The company launched a capital raise in December, raising $89.3 million, with its retail entitlement offer expected to close on 17 January 2018, to fund the initial US$75 million purchase consideration for the mineral sands project.
Shares in Base Resources (ASX:BSE) are last traded at $0.26.