cautious sundance holders get hoeful

In the business section of The West Australian today:

Sundance Resourc3s remains one of the most shorted stocks on the Australian bourse but a flurry of activity in recent weeks may give long-suffering investors in the company a reprieve.

Sundance holders are understandably cautious about the stock after past false starts. Australian Securities Exchange records show just over 9 per cent of its shares are held short.

Sundance has remained quiet in recent months as it assesses several bids to provide the infrastructure on its Mbalm project, which straddles the border of Cameroon and the Republic of Congo. There has been a swirl of activity around it however.

In March Sundance signed a 10year take or pay contract with Noble Group adding wieight to the company's long running argument there is still strong international interest in the development of the project.

Last week's conviction and sentencing of Hanlong's Liu Han for corruption also gives some hope for the 433 million shares owned by Hanlong Mining may eventually find a new home, removing uncertaintly about the overhang of the company's stock.

And the emergence of a new wave of activity, both in the iron ore sector and regionally in West Africa, may also herald the return of some sunlight to the battered hopefuls operating in the region.

The fact thar Rio Tinto has finally landed the signature of the Guinean Government on a development framework for Simandou signals that all interest in West Africa iron ore is not dead.

The mooted takeover bid for Papillion Resources will als help market perceptions of the region, should a significant offer materialise in the coming days.

And the Boastell did for Aquila Resources, along with other recent China-backed offers for companies with strategic resource assests, indicates that China Inc is again pushing for greater ownership of the resources feeding its massive economic shift.

The Aquila gid is of particular significance, givent the West Pilbara iron ore project requires a significant investment in infrastructure and Boasteel's engagement with haulage provider Aurizon is structured along similar lines to the split between mine and infrastructure development pursued by Sundance.

Sundance has said it is in discussions with two consortia over a funding and construction package for Mbalam's infrastructure requirements and has said it hopes to begin talks with one or other of the parties before the end of June. There are no guarantees and Sundance holders have good cause to be wary, but there's still reason to hope.

End of story.

All true except for the take or pay deal with Noble... it's not take or pay.

Cheers J