On 31 July 2017, the Company announced that it had reached an agreement with the Government of Cameroon to initially extend the Mbalam Convention ("Convention") by 6 months to 26 January 2018. A further 6-month extension will be granted if Sundance can show progress on funding the Mbalam-Nabeba Iron Ore Project ("Project") either by itself or with a credible partner. 30 September 2017 Quarterly
In Cameroon, the Company has ore reserves of 154Mt at 62.9% covered by the Convention, whilst in Congo the Company has reserves of 363Mt at 61.9% under an issued 25 year Congo Mining Permit.
The Company has seen increased interest in the Project from third parties during the quarter, especially from infrastructure engineering, procurement and construction ("EPC") contractors who are considering a role in building and assisting in obtaining funding for the Project.
A number of encouraging meetings were held during the Quarter with EPC contractors and others who have shown strong interest. Whilst the Company believes that the caliber of these parties would satisfy the needs of the Cameroon Government, these discussions are incomplete and still ongoing at the time of issuing this report.
The Company still believes that China is best placed in the long term to source a partner and funding for our Project. The Project’s iron ore quality and the scale of the deposits fit with the strategic needs of China to source superior quality high iron and low impurity iron ore, as well as China’s determination to deal with its environmental footprint by shutting many local low-grade iron ore mines and replacing their output with high-quality ore. Sundance’s ore quality is 63% Fe for the first 10 years of the Project. Stage 2 of our Project will produce a concentrate of 66 – 68% Fe from near 6 billion tonnes of resources.
SDL Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
