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Sundance announces change of control transaction

25th September 2018

By: Creamer Media Reporter

     

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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.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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