media sees cap raising as a positive move.....

Hey Guys

Looks like the media is seeing this as a positive announcement.........:)

Given the recent positive milestone achievements completed by Sundance Resources, they are seeing this Capital Raising as a positive, asking the question where is the cash coming from? CR aimed at existing investors to continue drilling or Chinese buy in eg JV Partner!


Cheers Nectar


Sundance Resources in pre-open pending capital raising announcement
Thursday, April 21, 2011 by John Phillips
Sundance Resources in pre-open pending capital raising announcement

Sundance Resources (ASX: SDL) has been granted a trading halt by the ASX pending a capital raising announcement, with the company's shares placed in pre-open.

Sundance has not yet indicated specifically where the potential new inflow of funds will be allocated, but recently has been achieving some major milestones in West Africa.

Earlier in the month Sundance completed the Definitive Feasibility Study (DFS) for Stage One, and the Pre-Feasibility Study (PFS) for Stage Two, at its Mbalam Iron Ore Project in the Republics of Cameroon and Congo.

By completing the studies the company has taken another step towards becoming a major iron ore producer and unlocking a new iron province in central West Africa.

The project is expected to generate strong cash margins and the company is well placed for first-mover advantage in the province where the development of this integrated mine, rail and port project is expected to unlock its potential.

The Net Present Value has been estimated at over US$4 billion for the total project (Stage One and Two) and there is an estimated Internal Rate of Return of 27% on an un-geared basis.

The DFS for Stage One was based on a forecast average production rate of 35 million dry tonnes per annum (mdtpa) of direct shipping ore averaging 63.6% iron.

The PFS completed for Stage Two was based on continued production of 35 Mdtpa of Itabirite hematite concentrate product at 66% iron.


http://www.proactiveinvestors.com.au/companies/news/15690/sundance-resources-in-pre-open-pending-capital-raising-announcement-15690.html