Hanlong’s Sundance purchase hits hurdlePUBLISHED: 0 HOUR 41...

Hanlong’s Sundance purchase hits hurdle

PUBLISHED: 0 HOUR 41 MINUTE AGO | UPDATE: 0 HOUR 41 MINUTE AGO
EDITED BY SARAH THOMPSON AND ANTHONY MACDONALD

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China’s Hanlong Mining has hit another hurdle in its battle to take over Sundance Resources with sources saying funding will take another four to five weeks to finalise.

Sundance Resources’ board, led by chairman George Jones, requested the company be placed in a trading halt on Tuesday.

Hanlong is said to be finalising terms with a state-owned steel mill after which time it’s believed the financing arrangements will be signed off. Wuhan Iron and Steel and Hebei Iron and Steel are two names that have been bandied about when it comes to possibly interested parties.

Sundance now officially hosts the right to mine the Mbalam deposit in Cameroon and holds the mining licence for the contiguous Nabeba deposit in the Republic of Congo, meaning it has met all the conditions for the scheme of arrangement for Hanlong. It also means that whoever acquires the West African-focused iron explorer can start construction as soon as the deal is done.

Hanlong last year dropped an exclusivity clause, believing that absolutely no one else would bother crashing its party, but a counter-bid cannot be written off just yet. That is not least because there are still said to be parties in the data room.

Source link from AFR:
http://afr.com/Blogs/Opinion_Street%20Talk#3670082c-69b4-11e2-bbfe-052a5142b3af