A dispute has broken out between Kwale miner Base Titanium and the Canadian firm that sold it the project over payment of royalties on minerals mined outside of the original boundaries of the lease area.
Base acquired the project in 2010 from Canada’s Vaaldiam Resources (formerly known as Tiomin Resources) in 2010 for $3 million —Sh435 million at current exchange rates— with an agreement to pay the seller a two percent royalty on future mining revenue as part of the consideration.
