Prominent Institutions take up Significant Stakes ahead of Kwale Acquisition
Base Resources Ltd (ASX:BSE) is pleased to announce that two prominent institutional investors have become significant shareholders in the Company. Asian Investment Management Services Ltd (“AIMS”) and RMB Resources (“RMB”) have taken up interests of 19.97% and 17.17% respectively, through their participation in the $8.0 million capital raising undertaken in connection with the Company’s acquisition of the Kwale Mineral Sands Project.
The allotment of shares to AIMS and RMB follows the completion of the $3.4 million 1 for 1 rights issue and unanimous shareholder approval at a General Meeting on 30 June for the acquisition of the Kwale Project and the associated $4.6 million share placement. AIMS and RMB join a number of other sophisticated investors who have also become substantial holders through the capital raising.
AIMS is a private investment vehicle of David Crichton-Watt. Mr. Crichton-Watt is the Managing Director of Malaysian-based funds management group AIMS Asset Management Sdn Bhd which currently has around US$250m under management.
RMB is the global resources focused merchant banking business of the FirstRand Group. Listed on the Johannesburg Stock Exchange, FirstRand Group is one of
Tim Carstens, Base Resources’ Managing Director said: “The Board welcomes all of our new shareholders at this exciting phase in the development of Base Resources. We are particularly pleased with the significant involvement of AIMS and RMB as it represents a strong vote of confidence in the quality of Base Resources’ Kwale Project, its management team and the Company’s value proposition.
“One of the clear challenges ahead of us will be to secure around US$200million in development funding for Kwale. The buy-in by AIMS and RMB to the extent they have strongly suggests they share our confidence that this task is achievable.
“We are delighted to have attracted their calibre of shareholder to the Company as we embark on the development of a world-class asset.”
With shareholder approval received and the capital raising now complete, settlement of the Kwale Project acquisition is expected to occur later this month.
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