Here's a golden oldie quote from George, seems like it was yesterday way back when in 2011.
", he did note that Hanlong’s stake in Sundance, acquired earlier in the year, had made it hard for the company to look at other partners for its flagship Mbalam iron ore project,"
Sundance chairman George Jones stands by Hanlong Mining Rebecca Lawson From: PerthNow November 25, 2011 9:42PM
SUNDANCE Resources chairman George Jones is not stressed if Hanlong Mining's bid does not get off the ground as a major Chinese bank fails to meet a ?confidence? deadline.
Mr Jones was today facing shareholders for the first time since Sundance accepted the higher $1.6 billion offer made in October at the company’s annual general meeting in Perth today.
In responding to shareholder questions, Mr Jones acknowledged the difficulties Hanlong was experiencing – including two of its former directors involved in insider trading allegations – but stood by the Chinese company.
“While Hanlong may not seem to be the perfect partner, they are actually a reputable group in China,” he said.
****However, he did note that Hanlong’s big stake in Sundance, acquired earlier in the year, had made it hard for the company to look at other partners for its flagship Mbalam iron ore project, which straddles the border of Cameroon and the Democratic Republic of Congo.****
Just before the shareholder meeting, Sundance announced that Hanlong had failed to secure a ‘letter of confidence’ from China Development Bank (CDB), which was needed before November 28.
The letter is one of the conditions for the takeover bid, and today Sundance agreed to waive the condition.
At the shareholders meeting, Mr Jones was not worried about the letter, saying he was satisfied that CDB had the capacity and the support of ‘China Inc’ to work on Mbalam.
He said he had personally heard the deputy president of CDB tell the president in Cameroon that “CDB will be financing this project”, which is currently estimated to cost $US4.6 billion to develop stage one.
Mr Jones added that even “if Hanlong stumbles, this project is good enough to attract another offer” after commenting that Sundance could attain a higher price than the 57c cash offer Hanlong was offering.
However, Sundance needed to bed down the mining conventions for Mbalam, he said.
Sundance is still negotiating with the governments of Cameroon and Congo – where Mbalam is located – and Mr Jones today said that finalisation of the conventions, which includes mining permits, is expected in the coming months.
He explained that in order to secure the conventions, Sundance needed to show to the governments that it had a partner that could finance Mbalam.
Mr Jones said until the conventions were completed, he didn’t expect another takeover offer, adding that it would be better for suitors to wait.
“Its possible that someone may make an offer for Sundance right up until shareholders vote on the Hanlong offer.”
Shareholders are due to vote on the offer in April or May next year.
Shares in Sundance closed at 42.5c today.
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