Gross Revenue Royalty on more than US$2 billion revenues

The Kwale mineral sands project (‘Kwale’ or ‘the project’) is fully financed, under construction and expects to begin production in late 2013. It is located in Kenya, approximately 40km south of the city of Mombasa, the largest port in East Africa. Vaaldiam owns a 1.5% gross revenue royalty on all product revenue from Kwale.

It is conceivable that total revenues for the project could exceed US$2 billion over its 13 year life, returning substantial value to Vaaldiam from the royalty.

The operator, Base Resources Ltd (formerly Base Iron Ltd.), (more about Base Resources Ltd.) (‘BRL’) (ASX:BSE) expects Kwale to produce an annual average of 330,000t/yr, 80,000t/yr and 35,000t/yr of ilmenite, rutile and zircon respectively over the first six years of operation from the higher grade Central Dune before declining to average 190,000t/yr, 55,000t/yr and 25,000t/yr over the subsequent seven years. BRL quotes respected industry experts TZ Minerals International forecasts of prices commodity.