kenya to give existing miners leeway, page-7

Vidi,

There's a huge difference between the Congo and Kenya Government systems. The Congo has been racked by civil war for decades and has a highly dysfunctional government and is racked by corruption and relies heavily on mining taxes to support it's GDP. Kenya on the other hand is probably the most stable country in all of Africa with a very stable Government based on the British westminster system as a member of the Commonwealth group of nations (as is Australia).

The very fact that Kenyan Government officials are currently engaging in discussions with not only Base Resources management but also UK firm Goldplat, clearly demonstrates that they want to find a 'win win solution' moving forward for all parties concerned!
Do you really think the Kenyan Government would waste it's time talking to companies such as Base if they were intending on stealing the company from us?
The Kenyan Govt has stated the new regulations will be phased in over the next 5 years.
"The new law takes effect from September 27. Firms will be given between three and five years to cede the 35 per cent ownership to local investors in what echoes shareholder rules in the telecom sector where residents must own at least 20 per cent of the firms."
But they have also publicly stated that,
"Ali Mohammed, permanent secretary at the Ministry of Environment and Mineral Resources, told Reuters the government will give special consideration to foreign companies with existing mining licenses."

Base management's legal advise also clearly states they feel the Base Resources operations in Kenya should be exempt from the Govt changes,
"Base has received legal advice that the Regulations do not apply to the Special Mining Lease No. 23 (“the SML”) covering the Kwale Project and that any application of the Regulations to the SML would most likely be unconstitutional. The advice also suggests that such application would be considered to be a breach of the Investment Agreement that Base has with the Government of Kenya"

So until we receive an update from management i would maintain an open mind and a positive attitude regarding any outcomes at this stage IMO!

This project is rock solid, and has funding in place, off-take agreements signed and is on schedule to commence production 3rd Quarter 2013.......

"off-take Agreements
The company has been able to successfully establish a portfolio of off-take agreements with quality counterparties covering 70% of projected revenue over the first 5 years of operations. These off-take agreements represent 100%, 30% and 52% of Kwale’s forecast production volumes for rutile, ilmenite and zircon respectively.
Agreements are being negotiated on the basis of firm volumes (subject to annual production forecasts by Base) , with pricing derived from prevailing market prices, based on agreed price index or six monthly or quarterly price negotiations.
Discussions in relation to further ilmenite and zircon sales contracts are well underway with a number of parties and further arrangements will be completed ahead of the commencement of production in the second half of 2013.

Fear is the dark room where negatives are developed!