Sundance Resources announced in early April that it had terminated its Scheme Implementation Agreement (SIA) with Hanlong (Africa) Mining Investment Ltd. under which Hanlong was to have acquired 100% of Sundance. The termination was based on failure by Hanlong to meet a funding condition in the SIA and notification from Hanlong that it was unlikely to meet other required conditions.
Sundance is an Australian junior company based in Perth that is developing the Mbalam-Nabeba iron ore project, which spans the border between Cameroon and Republic of Congo in central-west Africa. The project includes development of two mines, construction of a 510-km rail line dedicated to iron ore transport to the Cameroon coast, and construction of a deep-water port capable of servicing bulk iron ore carriers. Targeted production capacity is 35 million mt/y.
In the news background of Sundance’s termination of the Hanlong bid was the reported detention in late March of Hanlong CEO Liu Han in connection with a murder investigation involving his brother (E&MJ, April 2013, pp. 10 and 14). As of late April, no further news had developed with regard to that story.
Hanlong’s takeover bid was first announced and agreed to by Sundance in October 2011. With that proposal now terminated, Sundance will focus its efforts on discussions with other parties that have expressed strong interest in the Mbalam‐Nabeba project, Sundance Chairman George Jones said.
The Sundance statement noted that substantial progress has been made on the Mbalam‐Nabeba project over the past 18 months. Ore reserves and resources have increased, with probable ore reserves now totaling 436 million mt at 62.6% iron; high-grade direct shipping ore indicated and inferred resources totaling 775.4 million mt at 57.2% iron; and indicated and inferred itabirite resources totaling 4 billion mt at 36.3% iron.