Base Resources’ shares drop on Kenya licence cancellation reports
PERTH (miningweekly.com) - The share price of explorer Base Resources dropped by nearly 6% on reports that the company’s exploration efforts in Kenya might face some difficulties.
Recent reports suggested that the Kenyan Minister of Environment and Mineral Resources had cancelled three exploration licences held by Tiomin Kenya, which was subject to an option agreement with Base.
The exploration licences covered the Kilifi, Mambrui and Vipingu projects, on which Base had been conducting drilling and metallurgical testwork and evaluations over the last 18 months.
Base said in a statement on Tuesday that the company had not yet received formal notifications from the Department of Mines and Geology, or any explanation of the rationale for the cancellation of the licences.
However, the company noted that it was in full compliance with the terms for the licences, and had submitted all the required quarterly activity reports.
Furthermore, Base had successfully renewed the licences in 2011 and 2012.
The company said in a statement that it was taking legal action to protect its rights.
Base shares were trading at a low of 25c a share on Tuesday, down from an opening price of 27c a share.
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