Sundance Resources (ASX: SDL) has provided its activities report for the quarter ended 30 September.
· New AustSino, Noteholder Agreement entered into on 5 July 2019, extended to 30 June 2020
· Further meetings with Cameroon Government on convention extension
· Sundance shares remain in voluntary suspension
· $361,000 cash on hand as at 30 September 2019
As announced on 8 July 2019, Sundance Resources Ltd (“Sundance”) (ASX: SDL), AustSino Resources Group Ltd (“AustSino”) (ASX: ANS) and the Noteholders of Sundance (“Noteholders”) 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 would be cancelled in exchange for a cash, share and option package (“Sundance Agreement”).
The end date for completion of the Sundance Agreement was 31 December 2019. On 22 October 2019 a letter agreement was signed between Sundance and AustSino in which we agreed to extend the end date for completion of the Sundance Agreement to 30 June 2020 (“SDL Letter Agreement”).
In addition to this extension:
· The existing financial support arrangement in the Sundance Agreement will continue until completion. AustSino will continue to pay $100,000 per month to Sundance in return for the issue of ordinary shares in Sundance at an issue price of $0.0045 per share (which would comprise total payments of $1.3 million if completion does not occur until 30 June 2020).
· AustSino will now pay an additional $200,000 per month to Sundance starting on 1 December 2019 in return for the issue of ordinary shares in Sundance at an issue price of $0.0045 per share. However, the shares will not be issued to AustSino unless and until completion occurs (which would comprise total additional payments of $1.4 million to Sundance if completion does not occur until 30 June 2020).
· Sundance and AustSino have agreed to release each other (and their relevant personnel) from any claims or liabilities arising under or in connection with the Second Placement Agreement or the Mbalam-Nabeba Iron Ore Project prior to 22 October 2019 (the date of the SDL Letter Agreement).
The additional funds to be received from AustSino will be used for general working capital purposes and to progress discussions regarding the Mbalam-Nabeba Iron Ore Project.