Page 71 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 69
Note 6(c) Borrowings
CURRENT BORROWINGS $ $
Convertible Note - Debt Liability 5,204,602 4,708,774
Convertible Note - Derivative Liability 90,000 85,000
5,294,602 4,793,774
NON-CURRENT BORROWINGS
Convertible Note - Debt Liability 29,991,701 -
Convertible Note - Derivative Liability 4,139,590 -
Convertible Note - Capitalised Borrowing Costs (1,210,187) -
32,921,104 -
TOTAL BORROWINGS 38,215,706 4,793,744
Current Borrowings
Hanlong Convertible Note:
5 million convertible notes were issued by the Company on 6 February 2013 to Hanlong (Africa) Mining Investment Ltd
(‘Hanlong’) at an issue price of $1.00 per note. The holder may convert notes into underlying shares utilising a conversion
price of the average daily volume weighted average price of Sundance shares traded on the ASX over the five trading
days preceding the date of conversion. Conversion may occur at any time until 31 December 2014 at the election of either
Sundance or Hanlong. If the notes have not been converted they will be redeemed on 31 December 2014 at $1.00 per note.
The net proceeds received from the issue of the convertible notes have been split between the financial liability element
and a derivative component, representing the residual attributable to the option to convert the financial liability into equity
of the Company.
NON-CURRENT BORROWINGS
Noble and Investor Consortium Convertible Note:
The Company issued a convertible note with a face value of $20 million (Noble Note) and 200 million free attaching options
(Noble Options) to Noble Resources International Pte Ltd, and $20 million through the issue of 20,000 convertible notes
each with a face value of $100 (Consortium Notes) and 260 million free attaching options (Consortium Options) to an
investor consortium made up of investment vehicles managed by Blackstone Alternative Solutions, L.L.C., the D. E. Shaw
Group and Senrigan Capital. The Noble Note and Consortium Notes (together with 60 million free attaching Consortium
Options) were issued on 4 November 2013 raising $40 million. 200 million free attaching Noble Options and 200 million free
attaching Consortium Options were issued on 3 December 2013 following shareholder approval.
The net proceeds received from the issue of the convertible notes and free attaching options have been split between the
financial liability element, a derivative component (representing the residual attributable to the option to convert the financial
liability into equity of the Company) and equity (representing the value of the share options). The terms of the Noble and
Investor Consortium convertible notes are as follows:
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014