As flagged in its June quarterly report, Perth iron ore company Sundance Resources (ASX: SDL) has secured a funding injection while it completes a transformational debt restructuring. Sundance will place $750,000 worth of stock, at 0.4c a share, with AustSino Resources Group (ASX: ANS). The funds will also give AustSino exclusivity until August 31 to discuss development options with Sundance regarding the high-grade Mbalam-Nabeba projcet in West Africa.
Sundance Resources (ASX: SDL) (“Sundance” or “Company”) is pleased to announce that it has signed a placement agreement with AustSino Resources Group Limited (ASX:ANS) (“ANS”) to take a A$750,000 placement of Sundance shares.
The placement agreement between ANS and Sundance was signed on 1 August 2018. On Monday, 6 August 2018, ANS will provide A$750,000 in immediately available funds to Sundance and, no later than one business day after receipt of those funds, Sundance will issue ANS 187,500,000 ordinary fully paid shares. The issue price of the shares is $0.004, which is a 20% discount to the closing price on 1 August 2018, and will give ANS a 2.3% interest in the share capital of the Company. The funds will be used for the purposes of advancing the MbalamNabeba Iron Ore Project (“Project”) and general working capital (including payment of a 5% placement fee). Shareholder approval is not required for the issue.
Sundance and ANS have also agreed to discuss and advance the development of the Project on an exclusive basis until 31 August 2018, subject to existing arrangements between Sundance and Tidfore Heavy Equipment Group Co. Ltd relating to the Project.
Sundance Resources Chief Executive Officer and Managing Director Giulio Casello said:
“Sundance is pleased to receive the support from ANS. They and their Chairman, Mr Ding, have the background and credentials to provide great assistance to Sundance to progress our Project.
“Thisis anotherstep forward for the Company following on from our recent announcement of our agreement to make the Company debt free.”