Sundance Resources Limited (“Sundance” or “Company“) (ASX: SDL) is pleased to announce that its Share Purchase Plan (“Plan“) raised a total of $1,524,250 from eligible shareholders, which was above the targeted and underwritten amount of $1,000,000. The Directors have resolved to accept the oversubscriptions and will not be scaling back any applications.
As described in the Plan, Sundance also offered to the Underwriter (Patersons Securities Limited) the right to facilitate a placement of new shares in the Company at the same issue price offered under the Plan (“Top-up Placement“), for the purpose of providing further working capital to enable the Company to engage with strategic partners to develop the Mbalam Nabeba Iron Ore Project. Completion of the Top-up Placement has raised a further $368,000 from sophisticated investors and will result in the issue of 92,115,143 new fully paid ordinary shares (“New Shares“) in the Company.
The Plan and the Top-up Placement raised a total of $1,892,250 and will result in the issue of 473,654,568 New Shares on 25 September 2017.
The number of New Shares was determined by applying a 20% discount to the five-day Volume Weighted Average Price (“VWAP”) before the issue date of the New Shares (that is from 18 September to 22 September inclusive). The five-day VWAP has been calculated at $0.004994, resulting in the issue price being $0.003995.
Shareholder approval is not required for the issuance of New Shares under the Plan and the Top-up Placement.
Trading of these New Shares and the despatch of holding statements is expected to occur on 27 September 2017.
Sundance wished to thank its shareholders and Patersons Securities for their support in this capital raising as the Company continues to work collaboratively with stakeholders and other parties to secure a partner to develop the Mbalam Nabeba Iron Ore Project.
The full ASX announcement can be viewed here: