Page 113 - Sundance Resources Ltd Annual Report 2013

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013 111
NOTES TO THE
FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2013
Note 22. CAPITAL AND LEASING COMMITMENTS
2013
$
2012
$
Operating Lease Commitments
Non-cancellable operating leases contracted for
but not capitalised in the financial statements.
Payable minimum lease payments:
- Not later than 12 months 879,851 1,292,105
- Between 12 months and 5 years 28,083 685,848
- Greater than 5 years - -
907,934 1,977,953
The Company’s premises at Level 35, Exchange Plaza are leased for a period of three years which expires
on 31 January 2014.
The office premises lease of Cam Iron S.A. extends for a period of 36 months to 30 October 2013.
The Congo Iron SA office premises are leased for a period of 12 months through to 6 November 2013.
Cam Iron S.A. provides residential premises for two employees, while Congo Iron SA provides one.
Eachof these leases is for 12 months and has the option of being renewed.
Note 23. CONTINGENT ASSETS AND LIABILITIES
The Group is aware of the following contingencies as at 30 June 2013.
Congo Aircraft Incident
On 19 June 2010 all directors of the Company died in the Congo aircraft incident. The enquiry into the events
has not yet concluded and may give rise to further costs, which in turn, may or may not lead to further costs being
incurred by the Consolidated Entity.
As previously advised in the 2012 Annual Report, Cam Iron SA was notified of a legal claim in Cameroon on behalf
of the families of persons lost in the Congo air incident of 2010. The claim lapsed. However an application to revive
the claim has been brought in a Cameroon Court. Cam Iron SA will continue to defend any claim against it.
In July 2013 legal action in the UK High Court on behalf of the Cassley family was served on the Company.
Mr James Cassley was an employee of the investment company GMP Securities Europe LL. GMP is the First
Defendant in the action and Sundance is the Second Defendant. The losses claimed in the process are put at a
total of 6,236,844 pounds. Sundance has appointed legal advisors and is defending the action.
In June 2013 the Company was informed of court process filed in the US state of Illinois on behalf of the estates
and survivors of John Jones, Don Lewis, Geoff Wedlock, John Carr-Gregg, Natasha Flason and James Cassley.
These proceedings have not been served on Sundance.
Hold Co v Cam Iron SA
On 6 August 2012 Cam Iron SA received a claim from Hold Co SARL returnable in the Yaounde High Court.
Hold Co claims to have an entitlement to a 7 per cent interest in Congo Iron SA via Cam Iron SA’s interests.
The transaction by which Cam Iron SA acquired its interests in Congo Iron SA was disclosed in an ASX
announcement dated 10 October 2008.
On 27 August 2013, Cam Iron SA and Sundance reached an out of court settlement with Hold Co SARL and its
permanent representative and former CEO of Cam Iron SA, Mr Roger Bogne. As a result, one million Sundance
shares will be issued to Mr Bogne, and, subject to fulfilling certain conditions, Sundance will pay cash settlement
amounts to Hold Co and Mr Bogne. Payment of these amounts is expected to occur by mid-October 2013.
Sundance has recorded a current liability for the cash amount to be settled.