Sundance announces change of control transaction
Iron-ore developer Sundance Resources on Tuesday announced that a significant transaction, which would enable the company to advance the development of the Mbalam—Nabeba iron-ore project, in Africa, and leave the developer debt free.
In terms of the agreement, Sundance and fellow ASX-listed AustSino Resources have agreed to a $58-million placement of Sundance shares to AustSino, resulting in a change of control.
The company will use $50-million to cancel existing convertible notes on issue in exchange for a cash, share and option package for existing noteholders, while the balance will be retained for working capital.
The agreement, which is subject to a number of regulatory and shareholder approvals, suspends the term sheet announced on July 30, between Sundance and noteholders.
The deal is a “win-win scenario”, Sundance CEO Giulio Casello said in a statement noting that it enabled the company to progress the Mbalam-Nabeba iron-ore project, while repaying debt in an acceptable manner.
“AustSino has made its intent clear to see Mbalam-Nabeba developed and together we will soon be travelling to Cameroon and Congo to demonstrate how they can help develop the project,” he said.
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