10/07/2020 - 11:56

AustSino receives $100m from chair

10/07/2020 - 11:56

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AustSino receives $100m from chair
AustSino is exploring its Peak Hill iron ore tenements in Western Australia's Mid West region. Photo: AustSino

AustSino Resources Group will receive $100 million from an entity associated with its chairman to facilitate the company’s planned investment in Sundance Resources.

West Perth-based AustSino had entered into a subscription agreement with Sundance in September 2018, which was subject to AustSino completing a share placement to Shanghai-based Western Australian Port Rail Construction (WAPRC).

The WAPRC deal was delayed due to COVID-19 and determined not to be satisfied by June 30 this year, the former end date to the Sundance transaction, which had prompted AustSino to seek a new investor.

The company will now receive a $100 million investment from Midwest Resource Finance Group, an Australian proprietary company whose sole director and shareholder is AustSino chairman Chun Ming Ding, which will subscribe for around 7.7 million shares in AustSino.

The transaction will give Midwest maximum voting power in the company of around 59.9 per cent.

The end date to the Sundance deal has been extended until September 30.

As part of that deal, AustSino will pay $29 million to Sundance Resources, which in turn will issue around 11 billion company shares at a price of 0.26 cents per share, as well as grant AustSino around 11 billion unlisted options at an exercise price of 2 cents each.

AustSino Resources, formerly Padbury Mining, is currently exploring its Peak Hill iron ore tenements in Western Australia's Mid West.

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