Sundance Resources boss Giulio Casello has taken a big pay cut as the company seeks to cut costs, with the Perth-based explorer also locking in a $1.3 million investment to assist in the search for a partner for its Mbalam Nabeba iron ore project in Africa.
Sundance told the market today it had taken further steps to minimise costs, with the cash component of managing director Giulio Casello’s annual salary to be knocked down from $647,000 to $165,000.
Chairman Wal King’s pay has also been cut, from $139,000 to $60,000, while Sundance’s other executives have agreed to substantial salary reductions.
It follows an aggressive cost reduction initiative launched by the company in January, which included job cuts and a reduction in board size and remuneration.
Sundance also announce today it had locked in a term sheet for $1.3 million in new funding and a separate term sheet to extend the maturity date of its existing convertible notes, which have a face value of $95 million, by two years to September 2019.
“The new funding and extension of existing notes will assist in an enhanced strategy to find a partner for the Mbalam Nabeba iron ore project,” Sundance said in a statement.
“Sundance will be supported in pursuing this strategy by Noble Resources and its in-house China experts.
“Noble is an existing noteholder and part of the group of providing additional funding to Sundance.”
Other members of the group are Senrigan Master Fund and geologist David Porter.
Mr Casello said the company remains of the belief that Mbalam Nabeba will be developed and that belief is shared by Sundance’s noteholders.
“With the extra funding and the stabilisation of the iron ore price we are heading into a new and improved environment which will support our development strategy,” Mr Casello said.
“We continue to take measures to preserve cash while directing appropriate resources towards progressing the company and the project.”
Sundance shares were unchanged at 0.2 cents each at the close.
