The only thing that has been holding this project back is Funding, i know it is a big one and has been the case for a fairly long time.
It is important to briefly reflect on and recognize how far advanced the project is at this point.
Whilst seeking strategic project partners and funding in the background, everything else is pretty much completed and ready to go for the next major phase of mine development and infrastructure build. Company has spent upwards of $400m already. The Cameroon Government will reinstate the mining license once they see funding deal secured.
The resource and product to be produced will be of a high quality (some of the highest grades in the world) and large enough to support at least a 30 plus year mine life. In addition to the current resource the company had a further Exploration Target of an additional 9.3 to 13.2bt Itabirite some years ago which seems have been parked somewhere ahead of the priority of getting the existing mine up and running, but this target gives you an idea of what is still out there on their tenements.
Project will represent about 8% of GDP of Cameroon, and will help greatly to provide financial support and development for the country and people.
Just to remind everyone there is already an offtake agreement in place which is still current. That basically means that the company has already secured buyers for the product in advance. Noble will take 50-100% of the product depending on how much the other project equity partners (current consortium) decide they want. Individually they will also have first rights of up to 50% of the product. The flood gate is about to open for a SP rise as the last hurdle is jumped and the finish line is in sight. IMO of course.
See announcement from 2014 below.
ASX Announcement / Media Release
25 March 2014
Sundance agrees firm off-take agreement with global trading giant Noble Pivotal deal paves way for completion of debt funding
• Sundance subsidiaries Cam Iron and Congo Iron sign a firm long term off-take contract with leading global commodities trader Noble Resources International.
• Noble will buy all product produced for the first 10 years of operation outside that allocated to project equity participants.
• Project equity participants can buy up to 50 per cent of the production.
• Sales will be based on international standard pricing benchmark (Platts IODEX 62% Fe CFR China less freight costs) Free on Board (FOB) Lolabe Cameroon.
• Contract will help facilitate completion of debt funding for the construction of the port, rail, and mines.
https://www.sundanceresources.com.au/irm/PDF/2776_0/AgreeFirmOfftakeAgreementwithNoble
