PERTH (miningweekly.com) – China’s Hanlong Mining Investment has extended the deadline for the proposed takeover of iron-ore developer Sundance by eight weeks, after the Cameroon government established a Ministerial committee to support the development of the Mbalam project.
The steering committee would coordinate and oversee planning for the Mbalam mine, as well as its associated infrastructure, and would be responsible for all key approvals and strategic issues relating to the project.
The committee would comprise eight Cabinet Ministers representing departments involved in the project, and would be tasked with establishing coherence between the Mbalam project and all other mining, infrastructure, energy and socioeconomic programmes in the region, as well as developing a strategy and proposing measures to achieve the project’s objectives and ensuring compliance with legal and regulatory provisions.
Sundance MD and CEO Giulio Casello said that the Ministerial committee was expected to facilitate the total approvals process and to deal with any other issues that could arise beyond the fiscal and legal terms of the Mbalam convention.
“On this basis, it was preferable for all parties to agree a deferral of the date upon which the terms of the Mbalam convention were to be agreed,” he said.
Sundance said on Thursday that the extension of its scheme implementation with Hanlong would bring the revised target date to April 27 for the terms of the Mbalam convention and the Congo mining permit to be agreed, as well as for the satisfaction of the other conditions precedent.
Hanlong would have three weeks from the date of the terms of the Mbalam convention and the Congo mining permit to conclude a credit-approved term sheet with the China Development Bank.
Hanlong was offering Sundance shareholders A$0.57 a share, valuing the company at A$1.65-billion.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
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