Sundance Resources Limited (ASX: SDL) has provided its quarterly activities report for the period ending 30 June 2020.
Sundance, AustSino and Noteholders extend agreement.
AustSino secures a new source of funding.
Sundance shares remain in voluntary suspension.
$781,000 cash on hand as at 30 June 2020.
AGREEMENT WITH AUSTSINO AND NOTEHOLDERS UPDATES
As announced on 8 July 2019, Sundance Resources, AustSino Resources Group (ASX: ANS) and the Noteholders of Sundance entered into an agreement dated 5 July 2019, which regulates the terms on which AustSino would invest in Sundance and the existing notes held by the Noteholders are cancelled in exchange for a cash, share and option package. The end date for completion of the Sundance Agreement was 31 December 2019.
On 22 October 2019, Sundance announced a letter agreement was signed between Sundance and AustSino in which Sundance agreed to extend the end date for completion of the Sundance Agreement to 30 June 2020.
On 3 June 2020, AustSino announced to the market that it would not be able to satisfy the conditions precedent required under the Sundance Agreement by 30 June 2020. AustSino stated that it was unable to complete the placement agreement with Western Australia Port Rail Construction (Shanghai) Ltd (“WAPRC”) because WAPRC was unable to make a proposed $100 million cash injection available as required by 30 June 2020.
As announced on 25 June 2020, Sundance was advised by AustSino that a new investor to replace WAPRC had been identified and a new agreement was being finalised. This resulted in Sundance adjourning its Extraordinary General Meeting, which was scheduled for 29 June 2020, until the new investor became certain.
The Sundance Agreement expired on 30 June 2020.
Subsequent to the end of the quarter under review, on 2 July 2020 Sundance announced it was in negotiations with AustSino with a view to agreeing a further extension to the Sundance Agreement.
On 7 July 2020, Sundance announced its negotiations with AustSino had progressed to the signing of a new extension letter agreement between AustSino and Sundance to extend the Sundance Agreement to 30 September 2020 (“Further Extension Letter”). This Further Extension Letter required approval from the Sundance Noteholders by 17 July 2020 in order for the further extension to be effective.