Wow, so many moving parts. Not surprised it is a new deal but certainly SDL just keeps getting squeezed and increasingly hard to understand where SDL or ANS holders might end up.
So, no Cameroon convention and the value of the deal halved with shares now deemed to be issued at .26c instead of .55c. Noteholders have agreed to take even less cash to get out and also have their 2c options halved while SDL now get only $4m spending money.
Either the Note holders haven’t a lot of confidence or perhaps little choice!!
Interesting that apparently a meeting of the high powered Chinese consortium with the Cameroon Government didn’t sway them to renew the convention – why?
The Chinese consortium have signed non binding mou’s with ANS presumably to work together in regard to furthering the SDL tenements. The Chinese consortium, ANS and SDL have also signed non binding MOU’s to work together. Interestingly those MOU’s are for
“Note: the Consortium arrangements referred to in this Schedule contemplate the development of an integrated mine, port and rail project in Cameroon and Congo”
The responsibility for the Port & Rail were taken over by the Cameroon Gov some time ago so would appear the Chinese consortium don’t want to just look at the mine and are looking to take over whole project. Maybe Cam Gov are uncertain about proceeding this way and all they wanted was SDL to produce a credible equity partner for mine development?
Doesn’t appear to be any mention of discussions about developing any other transport options!
Interestingly the grant of unlisted options to ANS which exercise at 2c are now noted as
transferable to persons that do not require a disclosure document. Presume this would involve parts of the Chinese consortium (or others) taking a more direct ownership outside of the ANS structure.
As originally thought, all of this seems to confirm that WAPRC did not have this consortium sorted before the deal last year and negotiations have been a work in progress since. (Still does not make any sense why WAPRC have not had their approval for the transfer of $100m in hand prior to this unless the original ann was incorrect which has never been rectified or the money wasn’t readily available!)
ASX requirement for these funds to be transferred into Australia before allowing trading still appears a wise move.
Non binding mou’s mean sfa and whole deal looks like it has hardly progressed, although at least they now have some Chinese names to give some comfort – and perhaps it might now hinge on further talks between those Chinese Companies and the Cameroon Government re port and rail.
The ANS update is also pretty light on and while the WAPRC / ANS deal had already been extended to 12/19 little comment has been made in regard the ANS assets. The previous deal had a focus on the Mid West IO opportunities and if the Sundance deal didn’t proceed funds were to be directed to those projects. However, now it seems the whole focus has shifted to Africa with this statement in update:-
“It is intended that the balance of the funds to be received from WAPRC will primarily be applied in developing the significant iron ore project opportunities in Central Africa made possible by the New Sundance Agreement, including feasibility studies and commercial negotiations”Still all out there in never never land at present but at least SDL didn’t issue more shares to WAPRC this time to broker a new deal……………….
(If money ever gets transferred and shares issued first point of business should be share consolidation, too hard working with all these zeros
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