Mbalam developer Sundance raises A$40m
PERTH (miningweekly.com) – Iron-ore developer Sundance Resources has signed an agreement to raise A$40-million by issuing convertible notes and options to Noble Resources International and an investor consortium.
“These funding arrangements will not only secure Sundance’s financial position, but also demonstrate the ongoing support our company and the project continue to receive from strategic parties and global institutional investors,” said Sundance CEO and MD Giulio Casello.
He added that the funding would ensure that Sundance had sufficient funds to meet its anticipated working capital requirements for the Mbalam-Nabeba project, on the border of the Republic of Congo and Cameroon.
Under the terms of the funding, Noble Resources would invest about A$20-million through an unsecured convertible note, and would have the right to convert the note into a 30% stake in the to-be-formed marketing services company, or to convert it into fully paid shares in Sundance, at 12c a share.
Noble would also be issued with 200-million options, subject to shareholder approval, which would be exercisable on the maturity of the note, at 12c each, if the marketing company had not been set up before that time and did not hold the marketing rights to the Mbalam product.
Noble would further have the first right to offer, and the last right to match the price and terms of the sale of 15% of the ore produced from the Stage 1 Mbalam project.
Meanwhile, the investor consortium, consisting of Blackstone Alternative Solutions, the DE Shaw Group and Senrigan Capital, would also invest A$20-million through a two-year zero coupon convertible note issue, which was convertible into Sundance shares at a price of 10c each.
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