Base Resources Ltd said on Friday it is continuing to progress discussions with the Madagascan government over its on-ground suspension.

The Australian-based, Africa-focused mineral sands producer said its Toliara project in Madagascar represents a significant growth opportunity for the company and is committed to lifting the on-ground suspension.

This is because its definitive feasibility study was updated in October 2021, following a major update and increase to the Ranobe ore reserves estimate, significantly increasing both the scale and economic value of the project.

Base Resources’ discussions with the Madagascan government also relate to the fiscal terms of the project, with its project team now assessing the commercial potential of the monazite mineralisation in the deposit to seek to add significant value.

It added exploration on a prospective geological feature is underway, extending from the Kuranze region of Kenya across the border into Tanzania. However, it is currently limited to the Tanzanian side, due to Kenyan government-issued moratorium on issuing mineral rights, which has been in place since 2019.

Base Resources said the moratorium continues to impede its ability to undertake any exploration in the Kuranze region.

Shares in Base Resources were down 3.1% to 12.60 pence in London on Friday afternoon.

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