- Sundance to undertake an underwritten Share Purchase Plan.
- Funds raised will support the ongoing push for Sundance to find a partner to develop the Mbalam-Nabeba Iron Ore Project.
On 31 July 2017 Sundance Resources Limited (“Sundance” or “Company”) (ASX: SDL) announced that it had reached an agreement with the Government of Cameroon to initially extend the Mbalam Convention by 6 months to 26 January 2018. A further 6-month extension will be granted if Sundance can show progress on funding the Mbalam-Nabeba Iron Ore Project (“Project”) either by itself or with a credible partner.
This agreement wasreached after co-operative discussions between Sundance and representatives of the Cameroon Government. Both parties were driven by a common desire to advance the Project in the shortest possible time, within the context of the prevailing soft iron ore market conditions.
To support this desire, Sundance is pleased to offer its existing eligible shareholders the opportunity to participate in the Sundance Resources Limited Share Purchase Plan (“Plan”).
Under the Plan, eligible shareholders may apply to purchase up to $15,000 worth of new fully paid ordinary shares in the Company (“New Shares”) without paying brokerage or other transaction costs. Participation in the Plan is open to all holders of Sundance shares as at 5:00pm WST on Friday, 18 August 2017 (“Record Date”) with a registered address in Australia or New Zealand (“Eligible Shareholder”).
The issue price will be determined at the issue date of the New Shares under the Plan based on a 20% discount to the volume weighted average price of Sundance shares traded on the ASX during the last 5 days on which sales of shares were recorded immediately prior to the issue date of the New Shares.
Under the Plan Eligible Shareholders will be able to purchase parcels of New Shares valued at $1,000, $2500, $5000, $10,000 or $15,000. The Company seeks to raise $1,000,000 under the Plan, however, the Directorsreserve the right to expand the size of the Plan (up to the maximum permitted by the ASX Listing Rules) or scale back applications in their absolute discretion. Shareholder approval for the Plan is not required.
The Plan is underwritten by Patersons Securities Limited to $1,000,000. Under this agreement, the Company has also agreed to provide the underwriter the right to facilitate a placement of New Shares in the Company at the same issue price as under the Plan.