PERTH (miningweekly.com) – Iron-ore developer Sundance Resources has secured A$1.3-million in new funding, and extended the maturity date of its existing A$95-million convertible notes by two years.
The ASX-listed company on Friday reported that it had executed a term sheet with Senrigan Master Fund and geologist David Porter, under which the two parties would jointly invest an additional A$1.3-million through a subscription for new convertible notes.
The 13 000 convertible notes would have a face value of A$100 each and would mature on September 23, 2019. No interest would be payable on the notes.
At the note holders election, the notes could be converted into Sundance shares at a conversion price of 0.35c each, and would result in some 371-million Sundance shares being issued.
Meanwhile, Sundance has also signed a separate term sheet to extend the maturity date of its existing convertible notes from September 23, 2017, to September 23, 2019, and to increase the redemption amount by 20%.
Sundance told shareholders on Friday that the new funding and extension of the existing notes would assist in an enhanced strategy to find a partner for the Mbalam Nabeba iron-ore project, in the Republic of Congo and Cameroon.
In addition, Sundance is also undertaking further cost reduction initiatives, with key executives voluntarily reducing their cash salaries to support the development strategy through 2017.