For all those wondering, I found this article that pretty much sums up everything you need to know about what's going on at the moment. So sorry to all those investors who lost so much. Thanks to "The Market Herald".
Sundance Resources (ASX:SDL) set to delist amid African disputesJulian Douglas5 days agoSource: The West AustralianSundance Resources (SDL) will delist from the ASX on December 21 amid ongoing disputes with the governments of Cameroon and CongoPermitting issues for the company’s Mbalam-Nabeba Iron Ore Project, spanning the border of Cameroon and Congo, will require resolutionIf suitable terms can’t be met with the governments in question, the cases will go to arbitration at the International Chamber of CommerceThe disputes mean the company can’t satisfy ASX listing rules and will have to be delistedPlans to convert $132 million in debt notes have also been stymied, unless amendments are made to the agreement with noteholdersIf the debt can’t be serviced, Sundance will have to go into administrationSundance Resources has been suspended since September 10, with shares frozen at 0.55 centsSundance Resources (SDL) will delist from the ASX on December 21 amid ongoing disputes with the governments of Cameroon and Congo.The company had been suspended from trade pending the satisfaction of key ASX listing rules, with an extension granted until March 8 next year to get its affairs in order.With the ongoing ructions with Sundance’s African project, the company is no longer in a position to satisfy ASX requirements and will subsequently be delisted.Permit issuesThe company is involved in permitting disputes for the Mbalam-Nabeba Iron Ore Project, spanning the border of Cameroon and Congo.The company became aware on December 7 that the Congo Government had issued a decree which appears to revoke Sundance’s mining permit.The permit is held by SDL subsidiary, Congo Iron. The withdrawal decree has not yet been published in the Official Journal of Congo or formally provided to Congo Iron, but the document appears to bear the signatures of the President of Congo, the Minister of Mines and Geology, the Minister of Tourism and Environment, and the Minister of Finance and Budget.Sundance believes the revocation of the permit constitutes a serious breach of existing agreements.In a similar-but-different dispute with the government of Cameroon, Sundance subsidiary Cam Iron has also had permitting issues.Cam Iron applied for an exploitation permit on October 9, 2009. The rrelevant minister did not reject or otherwise process Cam Iron’s exploitation permit application within the 90-day time limit, meaning it had been deemed as granted.However, to finalise the permit the President of Cameroon must issue an implementing decree, which never happened, meaning the application remains in a kind of limbo.Sundance is seeking a remedy for the non-issue of the decree, as it allegedly breaches the terms of the transition agreement dated June 30, 2015.Sundance has enlisted experienced international dispute resolution counsel Clifford Chance to help with both matters.Both cases require a 60-day period of dispute resolution while the parties seek fair terms. Should no agreement be struck within that time, Sundance will seek to elevate the cases to arbitration administered by the International Chamber of Commerce.Sundance CEO Giulio Casello says the company is seeking a fair remedy for the disputes.“The latest breaches of the legal agreements we hold with our host countries leave Sundance with the need to enforce the company’s legal rights, and those of its subsidiaries, and protect the interests of Sundance shareholders,” Giulio said.Sundance has invested near $400 million in Mbalam and Nabeba, underpinned by our reliance on agreements with the governments of Congo and Cameroon and our adherence to the laws of those countries,” he said.“However, Sundance is now left with no choice but to issue the notices of dispute and prepare for international arbitration,” he added.OutlookGiven the ongoing disputes will prevent Sundance from satisfying ASX listing rules in the foreseeable future, the company has no choice but to delist from the index.The company is currently seeking proposals from international litigation funders in the case negotiations fail and Sundance needs to initiate action against Congo and Cameroon.The other unfortunate result of the African disputes is that the company’s plans to convert debt notes have been shot down.Sundance had entered agreements with noteholders to convert $132 million in debt into shares and royalties. But without significant amendment to the agreement, the deal can’t go ahead, and the company won’t be able to service its debts.If that were to happen, the company would be forced into administration.Sundance Resources has been suspended since September 10, with shares frozen at 0.55 cents.Related NewsRafaella Resources (ASX:RFR) enters week in trading halt (RFR:ASX)St George Mining (ASX:SGQ) details mining plans for 2021 (SGQ:ASX)Centaurus Metals (ASX:CTM) hits prize intercept at Jaguar (CTM:ASX)Fenix Resources (ASX:FEX) kicks off production at WA iron ore mine (FEX:ASX)The Market HeraldHome ASX News ASX 200 Day Trading Leaders
SDL Price at posting:
0.6¢ Sentiment: None Disclosure: Held
