Sundance and AustSino Connect in AU$58-million Agreement

- September 25th, 2018

In a collaborative effort, AustSino Resources Group is investing AU$58 million into Sundance Resources to help propel the company’s Mbalam-Nabeba iron ore project forward.

Sundance Resources (ASX:SDL) has entered a AU$58-million agreement with AustSino Resources Group (ASX:ANS) to help the company become debt-free and progress its Mbalam-Nabeba iron ore project in Cameroon and Congo.

Once the agreement is completed, AU$50 million will go towards cancelling Sundance’s existing convertible notes in exchange for a cash, share and option package for current noteholders. The other AU$8 million will be retained by Sundance for working capital and advancing the Mbalam-Nabeba project.

The agreement will consist of two placements; the first being Sundance issuing 62.5 million fully paid ordinary shares to AustSino at a price of AU$0.004 each by October 15. The second will entail AustSino paying Sundance AU$58 million, with Sundance issuing 10.5 billion shares at a price of AU$0.0055 each and granting 10.5 billion unlisted options for AU$0.02 each.

Is gold a good hedge investment?

 
Get an in depth market report for free!
 

In a statement, Sundance’s CEO Giulio Casello expressed joy towards the deal, and highlighted the collaborative effort the companies will be taking on the Mbalam-Nabeba project going forward.

“This is a transformational deal for Sundance and its shareholders because it delivers in one agreement a partner in AustSino who has the foresight, credibility and business network to enable Sundance to advance development of the Mbalam-Nabeba iron ore project and the repayment of the outstanding convertible notes in a very acceptable manner,” he said.

“AustSino has made clear its intent 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.”

Mbalam-Nabeba is Sundance’s flagship project, situated on the border of Cameroon and the Republic of Congo in Central Africa. Its first stage would be the production of a Direct Shipping Ore-quality sinter fines product meant to average over 62 percent iron at a 40 million tonnes per annum production rate for 12 years. The second stage would extend the project’s life by over 15 years, and is currently at a pre-feasibility stage.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Keep up with major deals and investment opportunities in marijuana

 
Learn to profit from cannabis companies
 

Get the latest Australia Investing stock information

Get the latest information about companies associated with Australia Investing Delivered directly to your inbox.

Australia Investing

Select None
Select All

Leave a Reply

Your email address will not be published. Required fields are marked *