They will get $11.78m, new shares and options from Sundance.
Embattled Noble Group agreed to be removed amongst the list of Australian mining firm Sundance Resources' noteholders amidst the latter’s balance sheet restructuring, an announcement revealed.
Through the deal, Sundance will cancel the Notes in exchange for a combination of cash, new shares of Sundance and options in Sundance for Noble.
The convertible notes, which are held by a wholly owned Noble subsidiary, had a face value of A$32 million (S$31.7 million).
The transaction is subject to the completion of a placement which has proceeds worth $49.48 (A$50m).
“This is a game-changing deal for Sundance which allows it to emerge debt-free and with a strong partner with the capabilities, resources and contacts to progress the Mbalam-Nabeba project,” Noble Group CEO William Randall said.
The firm’s subsidiary Noble Resources International (NRIPL) traces back its relationship with Sundance in 2013 when it subscribed for convertible notes in, and entered into off-take arrangements with, Sundance.
Since then, Noble continued to support Sundance as it seeks to develop its flagship Mbalam-Naeba iron ore project.
The deal will secure Noble with cash of approximately $11.78m (A$11.9m). Meanwhile, Sundance will issue 475.8 million new shares.
Moreover, Noble will get 2,378.8 million options in Sundance based on the further enlarged share capital of Sundance assuming the exercise of the options in full by NRIPL only.
According to Noble, the cash proceeds from the transaction will be utilised for general corporate purposes.
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