Ashurst has advised Base Resources Limited (Base) on partially underwritten accelerated renounceable entitlement offer, to raise up to A$10 million.

The proceeds from the Entitlement Offer will provide continuity and certainty of corporate funding, and allow Base to progress its strategic plan and capitalise on achievements to date (which include bringing the Kwale Mineral Sands Project in Kenya into production).  The requirement for such proceeds has come about due to historically low mineral sands prices and Base's corporate structure and debt financing arrangements, which restrict Base's ability to access operational cashflow from its subsidiary.

The Entitlement Offer has been partially underwritten by RFC Ambrian up to an amount of A$7 million. Base's largest shareholder, Pacific Road, has committed to take up its full entitlement (approximately A$2 million) and sub-underwrite the remaining A$5 million of RFC Ambrian's commitment. Other major shareholders with combined holdings of 29% have committed to subscribing for their full entitlements, representing approximately A$2.9 million of the Entitlement Offer.

Lead partner on the deal Roger Davies (Corporate) said: "We are delighted to have assisted Base with this equity raising.  The equity raising is an important step in Base's overall plan to expand the Kwale Mineral Sands Project and positions the company for future growth when market conditions improve.

"It was a pleasure working with the Base team, including Ashurst alumnus Chadwick Poletti (now Group Legal Counsel and Company Secretary for Base) on this transaction, and we look forward to continuing to support Base in the future."

Roger was assisted by partner Antonella Pacitti, lawyers Themo Georgiou and Rowan Krasnoff, with graduate James Campbell.