JOHANNESBURG (miningweekly.com) – Iron-ore developer Sundance Resources has appointed specialist resources sector advisory firm RFC Ambrian to advise the board on capital restructuring options to ensure the company’s balance sheet was “appropriately structured”.
Sundance said on Monday that RFC Ambrian, which had asked former Glencore executive Mark Eames to join its advisory team for the assignment, would engage with shareholders in the coming months and would make specific recommendations to the board about restructuring options.
Sundance has convertible notes on issue with a total value of $93.5-million and a redemption value of $116.8-million. Besides $2.5-million due to Hanlong on December 31, 2016, the remainder of the convertible notes were due on September 27, 2017.
Sundance CEO Giulio Casello said the iron-ore developer had successfully faced up to the challenges of the past six months, including a severe downturn in the iron-ore market.
“The logical next step in responding to current market conditions and likely development timing is to ensure that the company’s balance sheet is appropriately structured.”
Sundance reported that it had $4.3-million cash on hand at the end of March.
Eames, who was formerly in charge of Glencore’s iron-ore assets and had worked on developments in the Republic of Congo, where the Nabeba deposit was located, was expected to join the Sundance board should the restructuring process reach a satisfactory outcome.