Sundance Resources (ASX:SDL) has announced a new A$1.3 million convertible note issue and an extension to some existing convertible notes. Hanlong has agreed to convert 2,332,500 Convertible Notes on 31 January 2017 with remaining notes and accrued interest payable extended to 31 December 2017. Additionally, major shareholder David Porter has joined the Board as a Non-Executive Director with Wal King stepping down.
- In-principle agreement reached for:
- new A$1.3M convertible notes; and
- extensio n of maturity date of existing convertible notes to September 2019
- Hanlong to convert 2,332,500 Convertible Notes on 31 January 2017 with remaining notes and accrued interest payable extended to 31 December 2017
- David Porter joins the Sundance Board as non-executive Director
- Wallace King steps down as non-executive Director
- Shareholders to vote on issue of A$1.3M convertible notes at EGM in mid-February 2017
Sundance Resources Limited (ASX: SDL) (“Sundance” or “Company”) refers to its ASX announcement dated 25 November 2016 and is pleased to announce it has reached an in principle agreement and is in the process of executing formal documentation for the:
- investment of A$1.3 million into the Company through a subscription for new convertible notes (“2016 Investor Group Notes”) by Noble Resources International Pte Ltd (“Noble”), an investment vehicle managed by Senrigan Capital Group (“Senrigan”) and David Porter (together the “2016 Investor Group”) to be used to assist in an enhanced strategy to find a partner for the Mbalam Nabeba Iron Ore Project; and
- extension of the maturity date of the convertible notes due on 23 September 2017 to 23 September 2019 (“Existing Notes”) held by Noble, Wafin Limited, Senrigan and investment vehicles managed by D.E. Shaw and Blackstone Group L.P. There will be no change to the face value of the Existing Notes but an increase in the redemption amount by 20%.
Sundance also announces that:
- the maturity date for the existing 2,500,000 convertible notes held by Hanlong (Africa) Mining Investment Limited (“Hanlong”) at an issue price of A$1.00 per note with a total face value of A$2.5 million (“Hanlong Notes”) has been extended from 31 December 2016 to 31 December 2017. The arrangements also converts outstanding cash interest due, which had been agreed to be payable at the rate of 10% per annum on a quarterly basis on the remaining Hanlong Notes, to be capitalised and added to the value of the Hanlong Notes and converted under the same terms as the remaining Hanlong Notes; and
- pursuant to the terms of the Convertible Note Deed Poll entered into on 6 February 2013, Hanlong has issued a conversion notice to Sundance to convert 2,332,500 Hanlong Notes into fully paid ordinary shares in Sundance on 31 January 2017. Following the conversion, Hanlong will hold 167,500 Hanlong Notes at an issue price of A$1.00 per note with a total face value of A$167,500 and a maturity date of 31 December 2017.
In addition, Sundance announces that, with effect from today, Mr Wallace King has resigned as a non-executive Director of Sundance and Mr David Porter has been appointed a non-executive Director of Sundance.
As a consequence of Mr Porter being both a Director and an investor in the 2016 Investor Group, the issue of the 2016 Investor Group Notes is subject to, among other things, shareholder approval.
Sundance will seek approval from shareholders to issue the 2016 Investor Group Notes at an Extraordinary General Meeting (“EGM”) to be held in mid-February 2017.
Further details of the terms and conditions of the 2016 Investor Group Notes will be provided to shareholders in a Notice of EGM that is expected to be despatched to shareholders in mid-January 2017.
Mr Casello said “On behalf of the current and previous Sundance Board members, I would like to thank Mr King for all of his hard work and guidance to the Sundance Board during a challenging period. The Company looks forward to 2017 and the opportunities a strengthening iron ore price brings.”