27 June 2021
DEVELOPMENTS IN CAMEROON
Sundance Resources Ltd (“Sundance” or the “Company”) notes media reports that the Government
of Cameroon (“Cameroon”), through the Minister of Transport, Jean Ernest Ngallé Bibéhé, and the
Minister of Mines and Industry, **riel Dodo Ndoke, signed a memorandum of understanding
(“MoU” ) on 25 June 2021 in Yaoundé with AustSino Resources Group Ltd (“AustSino”) and Bestway
Finance Ltd (“Bestway”) for the construction of the 510km railway connecting the Mbalam-Nabeba
Iron Ore Project to the deep-water port of Kribi.
Sundance also notes a Shareholder Update announcement dated 26 June 2021 by AustSino, a Perthbased company that was delisted from the Australian Securities Exchange in December 2020,
confirming that it is a signatory to the MoU with Cameroon and Bestway.
Sundance and AustSino had partnered for two years to work together on the development of the
Mbalam-Nabeba Iron Ore Project, which included the development of the Mbalam mine in
Cameroon and the Nabeba mine in the Republic of Congo (“Congo”) as well as the required rail and
port infrastructure to deliver iron ore onto ships at Kiribi. As part of this partnership agreement and
in good faith, Sundance introduced AustSino and several of AustSino’s Chinese industry partners to
authorities in Cameroon and Congo.
This partnership agreement, which was updated and extended a number of times, was underpinned
by a commitment by AustSino to invest $29 million in Sundance to provide the Company with the
financial strength to advance Mbalam-Nabeba’s development. The partnership agreement was
terminated by Sundance in November 2020 because of AustSino’s inability to deliver on its
investment commitment.
Less than one month after Sundance terminated the partnership agreement with AustSino, Congo
illegally and without warning expropriated the licence held by Sundance and its subsidiaries over
the Nabeba project and shortly afterwards awarded them to Sangha Mining Development, a newly
formed, Hong Kong-registered company owned 100 per cent by Bestway.
As the MoU signing ceremony in Yaoundé between Cameroon, AustSino and Bestway demonstrates
the illegal expropriation of Sundance’s Mbalam-Nabeba Iron Ore Project by the Congo and
Cameroon Governments – for the benefit of another Australian ASX-registered company in AustSino
and Chinese interests – is now near completion. Sundance continues to have discussions with the
Government of Cameroon to find an acceptable way forward with regard to the Mbalam deposit.
Sundance Resources CEO Giulio Casello commented:
“We are shocked at these latest developments, not least because an Australian company – AustSino
– that we introduced into the Mbalam-Nabeba Iron Ore Project is attempting to benefit from the
illegal expropriation of Sundance’s iron ore assets.
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“AustSino had been our partner for a number of years. We worked in good faith to introduce
AustSino to our project and arrange a role for AustSino in the negotiations with Cameroon and Congo
on the basis of a clear understanding that AustSino would act in our mutual interests in accordance
with their legal obligations.
“Sundance has always fulfilled all of its licence obligations and gone above and beyond in both
Cameroon and Congo, which is why we are so determined to challenge this illegal expropriation
through the international courts, a process that is underway. We will now consider, with the
assistance of our legal advisers at Magic Circle firm Clifford Chance, whether in light of these
developments we need to expand the scope of our legal action to ensure we can protect the interests
of Sundance and our investors.”
Sundance announced on 2 June 2021 that it had commenced arbitration against Cameroon at the
International Chamber of Commerce in Paris. This followed on from Sundance’s announcement on
25 March 2021 that it had commenced arbitration in London against Congo, also under the rules of
the International Chamber of Commerce.
Sundance is claiming damages of $US8.76 billion from Congo and further sums from Cameroon (with
other remedies).
ENDS
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