Base Resources Ltd. agreed to acquire the wholly owned Mauritian subsidiaries of World Titane Holdings Ltd., which together hold a 100% interest in the Toliara heavy mineral sands project in Madagascar, for US$92 million.

The company said Dec. 19 that it will acquire an initial 85% interest for US$75 million and acquire the remaining 15% interest for US$17 million payable on achievement of key milestones as the project advances to mine development.

To fund the US$75 million initial consideration, Base will look to raise A$100 million, comprising A$36.5 million through a share placement to institutional investors and A$63.5 million via a 1-for-3 accelerated pro rata renounceable entitlements offer, both at 25.5 Australian cents per share.

The offer has been partially underwritten by RFC Ambrian Ltd. to a cap of about A$88.4 million.

Base intends to complete a full study phase before a decision to proceed to construction in the second half of 2019. Production at Toliara is expected to start mid-2021.

The acquisition is conditional on the company raising at least A$80 million to partially fund the acquisition costs.