Page 40 - Sundance Resources 2014 Annual Report

38 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014
8. Likely Developments
The Group will continue iron ore exploration and to explore and evaluate development alternatives for the Project in
Cameroon and Congo as discussed in section 5 Review of Operations.
9. Environmental Regulation
The Group’s operations are subject to environmental regulations under Cameroon and Congo legislation.
Cam Iron received environmental approval to progress the Project on 25 June 2010 with the receipt of a Certificate
of Conformity from the Ministry of Environment and Nature Protection (‘MINEP’). This approval was unconditional but
upgrades to the Environmental and Social Assessment (‘ESA’) documentation were required to be completed prior
to the commencement of operations. The ESA has been assessed by the Cameroon Government and Certificate of
Environmental Conformity has been re-issued to Cam Iron on 5 August 2014.
The baseline study programme for Congo Iron’s Nabeba Permit ESA was conducted in early 2011. The ESA documentation
was first submitted on 24 January 2012 to the Ministry for Sustainable Development, Forest Economy and the Environment
(‘MDDEFE’) and presented to the public. The ESA was reviewed by the MDDEFE and additional amendments to the ESA
were requested. The revised ESA was re-submitted on 15 May 2012 and was then followed up with a project site visit
from members of the MDDEFE on 10 June 2012. On 13 August 2012 a letter from the Chairman of the Inter-Ministerial
Commission was received stating that the working group is satisfied with the amended terms of reference and the ESA
has been accepted in its final form. The Certificate of Environmental Conformity was received from the Minister of the
Environment in September 2012 and reissued in June 2013.
10. Dividends
In respect of the year ended 30 June 2014, no dividends have been paid or proposed (2013: nil).
11. Events Subsequent to Reporting Date
Since the end of the financial year, Sundance has:
• On 24 July 2014 the Congo Government signed the Nabeba Mining Convention. This follows the issuing of the Nabeba
Mining Permit which was approved by the Ministerial Council for the Congo on 28 December 2012. The Convention
outlines the fiscal and legal terms and the conditions to be satisfied by Sundance subsidiary Congo Iron for the
development and management of the Nabeba Iron Ore Project.
• On 3 September 2014 the Company announced that it had secured a A$40 million investment into the Company
through a subscription for convertible notes and options by Wafin Limited (“Wafin”). These funds were received on 22
September 2014. The key terms of the agreement with Wafin are as follows:
• Wafin will invest A$40 million via three-year zero coupon unsecured convertible notes with a conversion price of 10
cents. If not converted into Sundance shares, these notes are redeemable at maturity for 130% of face value. On 23
September 2014 Sundance issued 400,000 convertible notes to Wafin with an issue price of $100 per convertible
note, maturing 36 months from the date of issue (23 September 2017).
• Wafin will also receive options over 260 million ordinary shares with an exercise price of 12 cents, which expire on the
earlier of 60 months from issue, 20 business days after the project’s Financial Close or a Change of Control Event.
210 million of these Options are subject to shareholder approval. On 23 September 2014 Sundance issued 50
million options over ordinary shares to Wafin.
• On 3 September 2014 the Company agreed, subject to ASX and any other regulatory and shareholder approvals, with
the Investor Consortium to replace the existing A$20 million convertible notes held by the Investor Consortium, which
mature in November 2015, with new A$22 million two-year convertible notes expiring November 2016. The options
issued to the Investor Consortium in November 2013 are proposed to be replaced with new options in the Company.
• On 15 September 2014 the Company announced that Mr George Jones will retire as the Company’s Chairman at the
conclusion of the Annual General Meeting on 27 November 2014. Mr Jones will be succeeded as Sundance Chairman by
Mr Wal King.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial years.
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2014