Sundance raises $40m for Mbalam-Nabeba
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Iron ore explorer Sundance Resources says it has raised $40 million through a subscription for its convertible notes and options by resources investor Gennadiy Bogolyubov.
“Mr Bogolyubov, who will make the investment through his vehicle Wafin, will take up convertible notes with a conversion price of 10 cents per share, representing a 20.5 per cent premium to the current Sundance share price,” Sundance said in a statement.
Under the terms of the deal, Jersey-based investment holding firm Wafin will invest $40 million and receive more than 260 million share options with an exercise price of 12 cents per share.
Wafin has also been given the right to appoint a representative to the company’s board if its total shareholding in Sundance grows by over 12.5 per cent.
Sundance said the funds received would be used to finance debt and equity owed from its Mbalam-Nabeba project.
Meanwhile, an investor consortium comprising investment vehicles managed by Blackstone Alternative Solutions, DE Shaw Group and Senrigan Capital, has agreed to replace its existing $20 million convertible notes held in Sundance with a $22 million two-year convertible notes deal, extending its expiry date from November 2015 to November 2016.
“A bankable offtake agreement with Noble Resources, the EPC contract for the port and rail with Mota-Engil, the port and rail concessions with the Cameroon government, and most recently the signing of the Nababa convention with the Republic of Congo, confirms that we are on the path towards development,” Sundance chief executive officer Giulio Casello said.
“We will continue to drive the project forward, addressing the requirements to prepare the project for financing and construction by issuing contracts for the front end engineering design for the mine plant and associated infrastructure, and upgrading the environmental assessments.
“All of this sets the foundation for financing and developing our project.”
Sundance shares rose by 1.1 per cent to 8.6 cents per share at 10am.