Page 90 - Sundance Resources 2014 Annual Report

88 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014
NOTE 15. EXPENDITURE COMMITMENTS
Exploration Permit – Republic of Cameroon
The Cameroon Ministry of Mines (‘Ministry’) granted an extension of Exploration Permit No. 92 requiring a total minimum
expenditure of XAF8,000,000,000 (approximately AUD$18,000,000) over the period 29 September 2012 to 29 September
2014. The permit has been further extended for 12 months to 22 July 2015, requiring a minimum expenditure of
XAF1,000,000,000 (approximately AUD$2,200,000) over this period.
The expenditure requirements of Exploration Permit No.92 are denoted in Central African CFA franc (XAF).
Exploration Permits and Mining Permit – Republic of Congo
On 6 February 2013, by Presidential Decree 2013-45, Congo Iron obtained a Mining Permit over the Nabeba –Bamegod
exploration permit area for a period of 25 years.
On 9 August 2013 by Presidential Decree 2013-405, the Ministry granted a second 2 year extension of the Ibanga
Exploration Permit, which requires a total minimum expenditure requirement of XAF 3,550,000,000 (approximately
AUD$8,000,000) over the two year period to 8 August 2015.
The expenditure requirements of Decree No 2013-45 for the Nabeba – Bamegod permit and Decree No 2013-405 for the
Ibanga permit are denoted in Central African CFA franc (XAF).
Cam Iron and Congo Iron as appropriate are not legally bound to meet the minimum expenditure commitments detailed in
Exploration Permits. However, failure to meet the required level of minimum expenditure could potentially result in revocation
of the said permit.
NOTE 16. EVENTS OCCURING AFTER THE REPORTING PERIOD
Since the end of the financial year, Sundance has:
➢• On 24 July 2014 the Republic of 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 Republic of 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 made up of investment vehicles managed by Blackstone Alternative Solutions, L.L.C., the
D.E. Shaw Group and Senrigan Capital (‘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.
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014