What do U think about the last statement from the analyst what dosnt want to named ?
says, the proposed West Africa project did not have high grades of iron ore.
.... from The Bull.com ....
Sundance shares higher on finance news
By AAP | 22.10.2012 07:09 PM
Sundance Resources shares closed slightly higher after coming out of a three-week trading halt, as its suitor secured China-sourced finance for its takeover bid for the iron ore explorer.
Despite the takeover bid by Hanlong Mining, investors have been reluctant to pay a premium for Sundance shares, which have fluctuated wildly in recent months as the deal drags on and as questions remain about the viability of its proposed West Africa project.
On Monday, China's Hanlong Mining secured loans to help it finance its $1.37 billion takeover of the iron ore explorer.
Hanlong secured a commitment from China Development Bank to provide a debt facility of up to $1.02 billion.
A separate funding commitment from Bank of Deyang Co will help finance the balance of the takeover offer.
Shares in Sundance Resources closed one cent, or 2.9 per cent, higher at 35 cents.
But this is 10 cents lower than Hanlong's 45-cent-discounted takeover offer in August.
Hanlong lowered its takeover offer for Sundance by one fifth following falls in iron ore prices this year.
Sundance said on Monday that its board was satisfied with the terms of the financing agreements organised by Hanlong, which was expected to lodge more information with the Australian Securities and Investments Commission (ASIC) in coming days.
"Sundance and Hanlong are continuing to work towards holding a scheme meeting, at which the SDL (Sundance) shareholders will be given the opportunity to vote on the terms of the scheme (implementation agreement), later this year," Sundance said.
Shares in Sundance came out of a trading halt on Monday morning, having been suspended since October 1.
Sundance is developing the $4.7 billion Mbalam Iron Ore project in west Africa, but it is dependent on a larger partner, such as Hanlong, providing funding.
Analysts continue to question the viability of the project, given recent iron ore price volatility.
CMC Markets chief market strategist Michael McCarthy said the stock had been on a rollercoaster ride in recent months.
"Despite the fact that financing has been secured for the amount of this bid, the market is still applying a discount, suggesting it believes that some of the other hurdles still to be jumped are significant."
An analyst, who did not want to be named, said the proposed West Africa project did not have high grades of iron ore and it was a long distance from the coast.
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Gazza
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SDL Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
