(Ecofin Agency) - Base Resources has concluded with World Titane Holdings an agreement to acquire an initial 85% stake in its subsidiary holding the Toliara mineral sands project in Madagascar.

Under the deal’s terms, the firm will pay $75 million for the interests it seeks. Once the project enters its development stage (in addition to other stages agreed upon), it will be able to acquire the remaining 15% for another $17 million.

Base Resources has announced yesterday a fundraising for AU$100 million to partially finance the stake acquisition. It sees the Toliara project as one of the best of its kind worldwide.

In fact, its opinion is backed by a JORC 2012 resource of 857 million tons of resources at 6.2% of heavy minerals for the Ranobe deposit on which the Toliara project is based.

Base Resources which operates the Kwale project in Kenya plans to start developing the Toliara project in H2 2019, and according to the development schedule, it should start production in mid-2021.

Louis-Nino Kansoun