the way I see it there were only 2 options.
1) Continue with the existing agreements and have Sundance pay out the debt on 23rd Sept 2019. A debt that if funding was not secured, Sundance would be unable to pay and result in declaring bankruptcy and going belly up with everyone losing out.
2) Cancel their notes and have them replaced with shares, offering a two fold option to gaining a return on their money.
a) "IF" the project ever gets to production, then they would receive royalties on top of any share price increase.
b) (Words of GC) Under the agreed deal, each noteholder was offered the opportunity to cancel their notes in exchange for
Sundance shares representing between 30% and 50% of the redemption value of their notes, based on a share price of 0.4c each.
The level of equity that the noteholders elected to receive then determined the rate of the proposed production royalty, which ranged from 1% to 1.24% of their share of revenue from the sale of the first 517-million tonnes of ore from the Mbalam Nabeba
iron-ore project, in the
Republic of Congoand
Cameroon.
This is by no means a guarantee that funding will be achieved by the due date. It does however offer the note holders and Sundance a lifeline.
I still don't see any progress on the Port or Railway and wont until funding for the mine is achieved.... A double edged sword where one wont progress without the other. 2019, 2020, 2021 waiting, waiting, waiting.
