“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...had made it hard for the company to look at other partners for its flagship Mbalam iron ore project..."
"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....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.”
As many have posted here, GJ is now being more explicit (perhaps this was the deal with HL for failing to provide the letter) and sounds like the overarching SDL strategy of the HL partnership is to obtain the conventions, and then its hoping its game on! More twists and turns in this drama. Initial volatility but perhaps some light way out into the far SDL universe somewhere...
SDL Price at posting:
42.5¢ Sentiment: Hold Disclosure: Held
