AMN - CAMEROON: “Positive” talks for iron ore project

A number of meetings have occurred recently in Cameroon between senior representatives of the Cameroon Government and representatives from Sundance Resources and AustSino Resources Group as well as potential other stakeholders interested in participating in the funding, construction and operation of the Mbalam-Nabeba Iron Ore Project.

Sundance said the meetings were positively received by the Cameroon Government, which reiterated its strong desire to see the project developed as quickly as possible.

The company is waiting on a formal written position from the Cameroon Government regarding the reinstatement of the Mbalam Convention between Sundance’s subsidiary Cam Iron and the government.

If the formal position from the Cameroon Government is supportive of Cam Iron, this will support AustSino to progress the relevant regulatory approval application in China.

This approval will facilitate the transfer of the required funds to complete the transactions documented in the agreement between Sundance, Sundance’s noteholders and AustSino dated September 24, 2018.

Completion of the agreement is also subject to other regulatory and shareholder approvals.

Sundance announced on December 31, 2018, that the end date of the agreement had been extended until March 31, 2019. Subsequently, and in response to the progress in Cameroon, Sundance has reached an agreement with all the noteholders and AustSino to further extend the end date of the agreement to June 30, 2019.

As consideration for facilitating the extension of the end date of the agreement, the company has agreed to issue 300 million fully paid ordinary shares to Western Australian Port Rail Construction (Shanghai) Ltd (WAPRC) at a deemed issue price of A$0.005.

The agreement previously signed with the noteholders and announced by Sundance on July 30, 2018, in which the company announced a restructure of its balance sheet and the elimination of the convertible notes, remains on foot. The term of that agreement has been extended by Sundance and the noteholders to September 30, 2019.

www.sundanceresources.com.au