ABN 69 009 196 810
(Incorporated in Western Australia)
Level 2, 30 Richardson Street
West Perth, WA 6005
PO Box 1786, West Perth WA 6872
T +61 8 9321 9886 F +61 8 9321 8161
18 February 2015
ASX Limited
Company Announcements
Level 4, 20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
CONVERTIBLE LOAN AGREEMENT AND SECURITY PLEDGE DEED
Sun Resources NL ("Sun" or the "Company") (ASX: SUR) announces that the Company has entered into a convertible loan facility agreement, (Loan Agreement) with Winform Nominees Pty Ltd (Winform), a subsidiary of Hancock Prospecting Pty Ltd under which Winform will loan A$957,806 to the Company.
The key terms of the Loan Agreement are as follows:
The interest payable under the loan is 5% per annum.
The loan is repayable on the earlier of:
a) 18 months from 18 February 2015; or
b) 20 business days after the completion of any capital raising by the Company which raises $5,000,000 or more (Qualifying Capital Raising) or a takeover of the Company.
Subject to the Company obtaining prior shareholder approval, Winform may elect to receive repayment of the loan through the issue of fully paid ordinary shares in the capital of Sun, instead of cash, to be calculated on the date of conversion by dividing the outstanding sum by the lesser of:
a) the price per share under a Qualifying Capital Raising; or
b) a price per share equal to the VWAP of the shares for the five ASX trading days prior to the repayment date noted above.
The Company has also entered into a Security Pledge Deed under which the Company has granted Winform security over Sun's interest in the Badger Oil Project Leases under the Loan Agreement.
The proceeds from the loan will be applied to the Company's activities, expenditure on projects
and also to meet ongoing corporate expenses.
Yours faithfully
SUN RESOURCES NL
Craig Basson
Company Secretary
www.sunres.com.au