Sundance in talks with other parties after A$1.4bn Hanlong deal terminated
PERTH (miningweekly.com) – Iron-ore developer Sundance Resources on Tuesday resumed share trading after calling off its A$1.4-billion scheme implementation agreement with China’s Hanlong Mining.
The company said in a statement that the Chinese suitor had failed to meet funding conditions and had informed Sundance it was unlikely to meet other required conditions.
“While it is disappointing after all this time that we will not complete this transaction, the board of Sundance believes it is in shareholders’ best interest to terminate this agreement with Hanlong,” said Sundance chairperson George Jones.
He added that the company had launched discussions with other parties, both Chinese and non-Chinese, regarding an interest in the Mbalam-Nabeba iron-ore project.
Jones said that, with the termination of the Hanlong agreement, Sundance could now focus all of its efforts on these discussions.
“Sundance’s Mbalam-Nabeba project is significantly more valuable today than when the Hanlong bid was first made,” Jones said, referring to the fact that the ore reserve had increased from 352.3-million tons to 436.3-million tons, and the high-grade hematite resource had increased from 521.7-million tons to 775.5-million tons, at 57.2% iron.
The project had also received environmental approvals from both the Cameroon and Republic of Congo governments for mine, port and railway infrastructure, and had signed the Mbalam Convention with the government of Cameroon, which focused on key financial terms for the project.
“Sundance believes it continues to receive support from the governments of Cameroon and the Republic of Congo, and from China for this project,” said Jones.
“The Mbalam-Nabeba project has been globally recognised as an excellent asset which is financially robust and will unlock a new world-class iron-ore region in Africa. We are confident we can find a suitable partner to help us bring this project into production,” he added.
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