Page 124 - Sundance Resources Ltd Annual Report 2013

122 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2013
Note 29. EXPENDITURE COMMITMENTS
Exploration Permit – Republic of Cameroon
The Cameroon Ministry of Mines (‘Ministry’) granted a second 2 year extension of Exploration Permit No. 92 requiring
a total minimum expenditure of XAF6,900,000,000 (approximately AUD$15,000,000) over the period
29 September 2010 to 28 September 2012. Cam Iron SA, a member of the Consolidated Entity, exceeded this
minimum expenditure requirement within the permit period.
On 27 July 2012 the Ministry granted a third 2 year extension which requires a total minimum expenditure of
XAF8,000,000,000 (approximately AUD$18,000,000) over the period 29 September 2012 to 29 September 2014.
The expenditure requirements of Exploration Permit No.92 are denoted in Central African CFA franc (XAF).
Exploration Permits and Mining Permit – Republic of Congo
The Republic of Congo Ministry of Mines (‘Ministry’) granted a 2 year extension of Nabeba-Bamegod and Ibanga
exploration permits under Decree No 2011-280 for the Nabeba – Bamegod permit and Decree No 2011-281
for the Ibanga permit dated 5 April 2011. These outlined a total minimum exploration expenditure requirement of
XAF5,800,000,000 (approximately AUD$13,000,000) over the period 4 April 2011 to 3 April 2013. Congo Iron SA,
a member of the Consolidated Entity, exceeded this minimum expenditure requirement within the permit period.
Congo Iron SA made application to the Ministry for further extension of these permits in June 2012, with the renewal
being granted for the Nabeba – Bamegod permit (over the area previously covered by Decree No. 2011-280) under
the Nabeba Mining Permit, which was approved by the Ministerial Council for the Republic of Congo on the 28
December 2012. In this case the exploration permit application was superseded by the successful granting of
the Mining Permit.
On 6 February 2013, by Presidential Decree 2013-45, Congo Iron obtained a Mining Permit over the Nabeba –
Bamegod exploration permit area for a period of 25 years. Expenditure commitments are yet to be negotiated with
the Congolese Government which are to be included in a Mining Convention.
On 9 August 2013 by Presidential Decree 2013-405, the Ministry granted a second 2 year extension of the Ibanga
Exploration Permit, which requires a total minimum expenditure requirement of XAF 3,550,000,000 (approximately
AUD$8,000,000) over the two year period 2 August 2013 to 2 August 2015.
The expenditure requirements of Decree No 2011-280 for the Nabeba – Bamegod permit and Decree
No 2011-281 for the Ibanga permit are denoted in Central African CFA franc (XAF).
Cam Iron SA and Congo Iron SA as appropriate are not legally bound to meet the minimum expenditure
commitments detailed in Exploration Permits. However, failure to meet the required level of minimum expenditure
could potentially result in revocation of the said permit.