International iron ore company Sundance Resources has terminated the agreement with China’s Hanlong Mining Investment under which Hanlong was to acquire 100% of Sundance.Sundance has decided to terminate the agreement because the funding condition was not met and after being informed by Hanlong that it was unlikely to meet the other required conditions. “Whilst it is disappointing after all this time that we will not complete this transaction, the board of Sundance believes it is in its shareholders best interests to terminate the agreement with Hanlong,” says Sundances chairperson George Jones. “This will enable us to focus all our efforts on discussions with other parties which have expressed strong interest in ouriron ore Mbalam-Nabeba project,” he adds. Over the past 18 months, there have been substantial achievements in respect to the growth and development of Sundance’s Mbalam-Nabeba project, located in Cameroon and the Republic of Congo.
These include the increase in probable ore reserves from 352.3 Mt to 436.3 Mt at 62.6% iron, an increase in high grade hematite resources (indicated and inferred) from 521.7 Mt to 775.4 Mt at 57.2% iron, as well as an increase in itabirite resources (indicated and inferred) from 2.3 Bnt to over 4 Bnt at 36.3% iron.Additional achievements by the company also include the completion of environmental approvals in Cameroon and the Republic of Congo for the mines, port and railway, the signing of the Mbalam Convention in Cameroon including agreement on key financial terms and the issuance of the Nabeba mining permit by Presidential Decree of the Republic of Congo. “Sundances Mbalam-Nabeba project is significantly more valuable today than when the Hanlong bid was first made and Sundance believes that it continues to receive support from the governments of Cameroon and the Republic of Congo and from China for this project. Sundance is engaging with other potential Chinese strategic partners with a view to developing the project.” “At the same time we will also progress discussions with non-Chinese parties. 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 that we can find a stable partner to help us bring this project into production, Jones concludes.