Page 17 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 15
PROJECT FINANCING
Coinciding with the awarding of the Port and Rail EPC contract, in June 2014
Sundance also announced that Standard Bank was appointed as the Company’s
Financial Advisor and non-exclusive Lead Debt Arranger for project-level funding.
Standard Bank is Africa’s largest bank by assets and earnings
with a presence in 32 countries globally; 20 in Africa. Standard
Bank has set corporate investment in Cameroon and the
Republic of Congo as priority, with both countries considered
of strategic importance.
Standard Bank provided indicative terms for the debt funding
of the port, rail and mine facilities in association with the
Mota-Engil Africa EPC tender, and have indicated their plan to
support the debt raising that will be required to include use of
their balance sheet alongside other lenders.
A tiered funding plan for debt financing has been proposed,
which would include involvement from Export Credit Agencies,
Development Finance Institutions and Commercial Banks.
Discussions with a wide variety of potential funding partners
has already been undertaken with several expressions of
interest received.
In addition, expressions of interest were also received
from Insurance Agencies who will provide protection for the
commercial banking tranche.
The following sources of Project Equity funding are currently
being considered:
• Sale of part or all of Port and Rail
• Partial Mine Sale
• Strategic investment
Sundance has commenced work with Standard Bank with
an aim to achieve Financial Close by late-2015, once all
conditions precedent are satisfied.
As a result of the commercial discussions taking place, Sundance
is confident there is considerable support for the development
of the Mbalam-Nabeba Iron Ore Project by both Western and
Chinese providers of project equity and debt capital.
Site works at Nabeba, Republic of Congo