Sundance Resources (ASX: SDL) spent the March quarter progressing its AustSino/noteholder agreement, which now has an end date of June 30. The company also received a $1.1 million investment from sophisticated investors during the reporting period, while it waits on the Cameroon government’s decision on the Mbalam Convention reinstatement.
Sundance Resources Limited (ASX: SDL) provides the following information about activities for the quarter ended 31 March 2019.
· $1.08M investment from sophisticated investors during the Quarter
· AustSino/Noteholder Agreement end date extended to 30 June 2019
· Sundance waiting on Cameroon Government decision on Mbalam Convention reinstatement
· Sundance remains in voluntary suspension while AustSino responds to ASX queries for further information
· $576,000 on hand at 31 March 2019
AGREEMENT WITH AUSTSINO AND NOTEHOLDERS UPDATES
On 25 September 2018 Sundance announced that it had signed an agreement (“Agreement”) with AustSino Resources Group (ASX: ANS) (“AustSino”) and all noteholders of the Company (other than Wafin Limited (“Wafin”)) being Senrigan Master Fund, Noble Resources International Pte Ltd, D. E. Shaw Composite Holdings International, Ltd, BSOF Master Fund L.P. and David Porter (together the “Noteholders”).
On 1 October 2018 Sundance announced that Wafin had executed a deed poll dated 28 September 2018 (“Accession Deed Poll”) pursuant to which Wafin agreed to be bound by the terms of the Agreement. The Agreement will deliver funding for Sundance, leave Sundance debt free, and bring in partners who have the capability and capacity to fund and bring the Mbalam Nabeba Iron Ore Project (“Project”) into production.
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 positive progress in Cameroon, Sundance 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 on 9 April 2019 issued 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 was 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.
Further Funding Received
During the current quarter Sundance received from AustSino and sophisticated investors a total of $1,080,000 (less costs) in immediately available funds. The funds will be used for working capital and to progress the requirements of the Agreement. Sundance received $120,000 from AustSino following the issue by Sundance of 30,000,000 fully paid ordinary sharesto AustSino at an issue price of $0.004 pershare.
AustSino also received 60,000,000 bonus options (2 options per share issued) at an exercise price of $0.006, and due to lapse 5 years after issue. The total funding received from AustSino now totals $1.120M and its shareholding in Sundance as at 31 March 2019 is 3.24%. During the quarter Sundance also received $960,000 from other sophisticated investors under the same terms as per the issue to AustSino described above.