Base applied for the licence, which covers 136sq.km from the southwest of Kwale towards the Tanzania border, after an airborne geophysical and radiometric survey identified a series of promising exploration targets.

The company has started preparatory activities at the licence area, with a drill programme planned for 2019.

Managing director Tim Carstens said receipt of the licence was an important step to possibly extending Kwale's 13-year mine life.

Base's shares fell 2.08% Thursday in Australia trading to A24c (US17c), although in London trading was up 1.72% Thursday mroning to 14.75p (US18.85c).