Kwale Mineral Sands Project / Base Resources

Endeavour advised Base Resources on the project financing of the Kwale Mineral Sands Project in Kenya. The project was the first mining project finance ever in Kenya, a country with no history of large scale mining.

Comprehensive role advising the project sponsor including:
  • Development of a financing plan and contractual structure
  • Documentation negotiations
  • Negotiations with offtake counterparties
  • Supporting Government negotiations and processes
  • Supporting the company with the conditions precedent to achieve drawdown and closing of the financing
  • Junior sponsor issues
  • Country risk  -  Kenyan 35% indigenisation law
  • Perfecting Security in Kenya
  • Market /offtake risk on a mineral sands product with no terminal markets
  • Co-ordination of a diverse financing group including DFIs, commercial banks and equipment vendors
  • Negotiated cost overrun facility and completion guarantee
  • Comprehensive independent legal and technical due diligence
  • Investment Agreement with Kenyan Government
  • Negotiated offtake agreements incorporating floor price arrangements with creditworthy offtakers
  • Political Risk Insurance cover for commercial Lenders
  • Involvement of DFIs from OECD countries

Key Contact

David Rhodes

Managing Director