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  • Mineral exploration company AustSino Resources Group (ANS) has entered a binding subscription agreement with Midwest Resource Finance Group
  • Under the agreement, Midwest will subscribe for approximately 7.6 billion AustSino shares at 1.3 cents each, to raise $100 million
  • AustSino originally had a similar agreement with Western Australian Port Rail Construction (WAPRC), but it fell through after delays
  • After this transaction, Midwest will hold approximately 59.90 per cent voting power in AustSino Resources
  • AustSino Resources shares have been suspended from trade since September 2018, priced at 1.7 cents per share

Mineral exploration company AustSino Resources Group (ANS) has entered into a binding subscription agreement with Midwest Resource Finance Group

Midwest has agreed to subscribe for 7,692,307,693 AustSino shares, at 1.3 cents each. In doing so, the placement will raise $100 million for AustSino Resources.

Originally, AustSino had a very similar placement agreement with Western Australian Port Rail Construction (WAPRC). WAPRC was meant to buy $100 million worth of AustSino shares, in return for approximately 61 per cent interest in the company.

However, AustSino’s deal with Sundance Resources was impacted by delays related to COVID-19 and the resulting travel and working restrictions. As such, conditions for the WAPRC agreement could not be met by June 30, 2020, and the deal fell through.

As a result, the company identified Midwest as a potential investor to replace WAPRC. After the transaction completes, Midwest will hold up to a maximum of 59.90 per cent voting power in AustSino.

This placement is subject to the customary conditions, including approval from AustSino’s shareholders.

While the WAPRC deal is no more, AustSino’s prior agreement with Sundance Resources may still go ahead.

The original end date for the transaction was June 30, 2020, but this has been extended until September 30, 2020. However, this extension is still subject to approval from Sundance’s noteholders, along with other conditions previously agreed upon this month.

If the conditions are met by September 30, AustSino will pay $29 million to Sundance. In return, Sundance will issue AustSino with 11,153,846,154 shares, at 0.26 cents per share.

In addition, Sundance will also grant AustSino the same number of unlisted options at an exercise price of two cents each. These options will have an expiry date of five years after the date of issue, and will be transferable to people who do not require a disclosure document.

AustSino Resources shares have been suspended from trade since September 2018, priced at 1.7 cents per share.

ANS by the numbers
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