PERTH (miningweekly.com) – Iron-ore developer Sundance Resources has secured an additional A$7-million in funding by executing a term sheet with an existing noteholder.
Some 70 000 convertible notes would be issued at a face value of A$100 each, and would mature on September 23, 2017. No interest would be payable on the notes and they could be converted into Sundance shares at the election of the noteholder.
If all the notes were converted, it would result in the issue of some 437-million shares in Sundance.
If they were not converted prior to the maturity date, the notes had to be redeemed at 120% of the face value.
Sundance said the noteholder had also agreed, in principle, to extend the maturity date of an existing A$44-million convertible notes from November 2015 to September 2017.
“The renewed commitment from noteholders is extremely pleasing and a vote of confidence in the significant progress made on the project over the last nine months,” said Sundance MD Giulio Casello.
“We acknowledge the difficult market conditions being encountered by resource development companies; however, I believe our project stands out due to its robust economics combined with the ongoing support from the governments of Cameroon and Congo, as well as that of China.
“Together with our own cost reduction efforts, we have added significant momentum as we build towards financial close of the Mbalam-Nabeba project, which is expected in 2016.”
The Mbalam-Nabeba iron-ore project straddled the border between Cameroon and the Republic of Congo. The Nabeba deposit would underpin Stage 1 of the Mbalam-Nabeba project development, which was a 35-million-tonne-a-year direct shipping ore operation that would run for a minimum of ten years.