Sundance Resources' Mbalam iron ore deposit in the Republic of Congo

Sundance Resources has raised A$40 million with global resources investor Gennadiy Bogolyubov through a subscription for convertible notes and options, which will be used to support the company’s Mota-Engil project.

Bogolyubov, who will make the investment through his vehicle Wafin, will take up convertible notes with a conversion price of 10 cents per share, representing a 20.5 % premium to the current Sundance share price. Wafin is a Jersey based investment holding company that is beneficially owned by Bogolyubov.

Bogolyubov is a strategic investor with a broad range of private industrial business interests, including across all parts of the steel and ferroalloys value-chain, which operate throughout the world including Australia, Africa, the Commonwealth of Independent States, Europe and North America. Bogolyubov is the ultimate beneficial owner of Consolidated Minerals, a major manganese ore producer with operations in Western Australia and Ghana.

The proceeds will be used to support and oversee Mota-Engil as they mobilise procurement, design and construction teams for the project and for Front End Engineering and Design (FEED) contracts for the mine plant and associated infrastructure.

Furthermore, the proceeds will be used for the appointment of independent technical experts to satisfy lenders requirements, which will include upgrading our Environmental Impact Assessment to the latest Equator Three Principles and for the negotiation and detailed term sheet documentation of a comprehensive debt and equity funding package for the Project.

Sundance CEO and Managing Director, Giulio Casello said the commitment from both groups was a substantial vote of confidence in the strength of the Company’s Mbalam-Nabeba Iron Ore Project.

“We are delighted that a global investor with the skills and experience of Mr Bogolyubov has identified Sundance and our project as having such a strong future,” Casello said. “Sundance is a strong strategic fit for Mr Bogolyubov’s portfolio across the ferroalloy chain and complements his group’s existing manganese ore production projects.

“We are equally pleased to have the ongoing support of Senrigan, DE Shaw and Blackstone , which reaffirms their confidence in the company and this world – class project. Sundance has achieved a number of significant milestones in the past year, which is reflected in the calibre of the global investors who we have successfully attracted and continue to attract to back this very exciting project,” he added.

Sundance Resources has secured a bankable off-take agreement with Noble, the EPC contract for the port and rail with Mota-Engil, the port and rail concessions with the Cameroon Government, and most recently the signing of the Nabeba Convention with the Republic of the Congo.

“This confirms that we are on the path towards development. We will continue to drive the project forward, addressing the requirements to prepare the project for financing and construction by issuing contracts for the Front End Engineering Design for the mine plant and associated infrastructure , and upgrading the environmental assessments. All of this sets the foundation for financing and developing our Project,” said Casello.

Commenting upon the investment in Sundance, Bogolyubov said: “I am delighted to have been able to make this initial investment in Sundance. I am very impressed with the quality of both the Mbalam-Nabeba Iron Ore Project as well as Sundance’s management team – and so the opportunity to support the project’s development is very exciting.

“We have had, and continue to have, great experiences operating in Ghana, West Africa, and I am sure that the Republic of Cameroon and the Republic of Congo will be equally fulfilling. We aim to use our extensive experience to make a significant contribution to the development of Mbalam-Nabeba and look forward to developing a long-term relationship with Sundance.”

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