Sundance Resources has raised $85 million from international institutional investors to complete a definitive feasibility study of its Mbalam Project, including mine, process, transport and port infrastructure and also provide general working capital.
Sundance Resources has raised $85 million from international institutional investors to complete a definitive feasibility study of its Mbalam Project, including mine, process, transport and port infrastructure and also provide general working capital.
In an announcement made today, Sundance said it would place 566.6 million shares at 15 cents each with overseas institutional investors in two tranches, with the latter being subject to shareholder approval.
Sundance managing director, Don Lewis is extremely pleased with the strong interest received from institutional investors for the raising.
"We have deliberately targeted a new investor base to broaden the reach and exposure of the Company to the international market ahead of our proposed project financing activities in 2010," he said in a statement.
"The raising will allow us to aggressively accelerate our development program at Mbalam, establishing Sundance as the first mover in this emerging iron ore province. This is a very significant step in terms of realising the full potential of the Mbalam Iron Ore Project."
The company, which is focused on mining interests in the Republic of Cameroon and the Republic of Congo, on the central west coast of Africa, has commenced feasibility study on its Mbalam Iron Ore Project as the basis for developing a global iron ore business.
Central West Africa is considered to have the potential to develop into a significant new iron province, underpinned by the Mbalam Project and nearby projects in Congo and Gabon.
Full announcement below:
Sundance Resources Ltd (ASX: SDL)
ASX RELEASE 9 November 2009
Sundance Completes Placement Agreement To Raise A$85M From International Institutional Investors
International iron ore company Sundance Resources Limited (ASX: SDL - "Sundance") announced today that it has completed a Placement Agreement to raise A$85m from international institutional investors.
Subject to shareholder approval being obtained and other general conditions of the Placement Agreement, a total of 566,666,667 shares will be issued at A$0.15 per share. The raising will be completed in two tranches. The first tranche of 316,806,421 shares is to be issued within the Company's 15% placement capacity. The second tranche of 249,860,246 shares will be issued subject to shareholder approval being obtained at an Extraordinary General Meeting of shareholders to be held on 9 December 2009.
Commenting on the fund raising, Don Lewis, Managing Director of Sundance, said "we are extremely pleased with the strong interest received from institutional investors for the raising. We have deliberately targeted a new investor base to broaden the reach and exposure of the Company to the international market ahead of our proposed project financing activities in 2010. The raising will allow us to aggressively accelerate our development program at Mbalam, establishing Sundance as the first mover in this emerging iron ore province. This is a very significant step in terms of realising the full potential of the Mbalam Iron Ore Project."
The proceeds of the raising will be used to:
- complete Definitive Feasibility Study of the Mbalam Project, including mine, process, transport and port infrastructure;
- undertake drilling to define further High Grade mineralisation on the Company's portfolio of exploration landholdings; and
- provide general working capital.
Accordingly, further to Sundance's request for a voluntary suspension pending completion of the raising, Sundance requests that ASX reinstate its ordinary shares (ASX:SDL) pursuant to ASX Listing Rule 17.7 with immediate effect.
