Sundance Resources Limited (ASX: SDL) has provided a market update on both meetings with the Cameroon government and its noteholder agreement with AustSino Resources Group. Sundance and AustSino have extended the end date of their noteholder agreement to June 30, whilst the Cameroon govt has signaled plans to reinstate the Mbalam Convention with the company.
Sundance Resources Limited (ASX: SDL) has provided a market update on both meetings with the Cameroon government and its noteholder agreement with AustSino Resources Group.
· Cameroon Government considers reinstating the Mbalam Convention
· Sundance, AustSino and Noteholder Agreement end date now extended to 30 June 2019
A number of meetings have occurred recently in Cameroon between senior representatives of the Cameroon Government and representatives from Sundance and AustSino Resources Group (ASX: ANS) (“AustSino”) as well as potential other stakeholders that are interested in participating in the funding, construction and operation of the Mbalam-Nabeba Iron Ore Project (“Project”).
The meetings were positively received by the Cameroon Government, which reiterated itsstrong desire to see the Project developed as quickly as possible. Sundance is currently waiting on a formal written position from the Cameroon Government regarding the reinstatement of the Mbalam Convention between Sundance’s subsidiary Cam Iron and the Cameroon Government.
If the formal position from the Cameroon Government issupportive of Cam Iron, this willsupport AustSino to progress the relevant regulatory approval application in China. This approval will facilitate the transfer of the required funds to complete the transactions documented in the agreement between Sundance, Sundance’s noteholders (“Noteholders”) and AustSino dated 24 September 2018 (“Agreement”) and as set out in Sundance’s ASX announcement of 25 September 2018 (“Announcement”).
As per the Announcement completion of the Agreement is also subject to other regulatory and shareholder approvals. End Date Extension Sundance announced on 31 December 2018 that the end date of the Agreement had been extended until 31 March 2019. Subsequently, and in response to the progress in Cameroon, Sundance has reached an agreement with all of the Noteholders and AustSino to further extend the end date of the Agreement to 30 June 2019.
As consideration for facilitating the extension of the end date of the Agreement to 30 June 2019, the Company has agreed to issue 300 million fully paid ordinary shares to Western Australian Port Rail Construction (Shanghai) Ltd (“WAPRC”) at a deemed issue price of A$0.005. No shareholder approval is required for the issue of these shares to WAPRC.
The agreement previously signed with the Noteholders and announced by Sundance on 30 July 2018, in which the Company announced a restructure of its balance sheet and the elimination of the Convertible Notes, remains on foot. The term of that agreement has been extended by Sundance and the Noteholders to 30 September 2019.