Please read last sentence......still no fiance approved
Iron ore deal boosts shares Author: AAP Date: 01/01/2013 Words: 247 Source: NCH Publication: Newcastle Herald Section: Business Page: 27 SUNDANCE Resources shares have surged more than 15 per cent on reports that China's Hanlong Mining is finalising a $1.3 billion acquisition of the Africa-focused iron ore hopeful. At the close of the final trading day of 2012, Sundance stock was up 5?, or 15.6 per cent, at 37?, with 23.6 million shares changing hands.
The frenzied trading came two days after Chinese state-run news agency Xinhua reported that Hanlong planned to complete the acquisition of Sundance Resources for 45? per share by March 1, after submitting paperwork to the Australian Securities and Investments Commission.
The report cited officials from Hanlong Group, based in southwestern China's Sichuan province.
Hanlong already owns about 17 per cent of Sundance and wants it for its $4.7 billion Mbalam mine in West Africa that straddles the border between the republics of Congo and Cameroon.
The Mbalam project, which includes building a 510-kilometre rail line and a deepwater port, is expected to produce 35 million tonnes of iron ore a year.
Xinhua said Hanlong was seeking a partnership with Chinese state-owned companies and investing $US5 billion ($4.84 billion) to develop the Mbalam project.
Operations were expected to begin in 2014, Xinhua said.
The 45?-a-share bid by Hanlong, which would value Sundance at around $1.3 billion, has been revised down from 57? a share earlier last year amid falling world iron ore prices.
On Sunday, Sundance managing director Giulio Casello said the approval, coupled with the recently signed Mbalam Convention in Cameroon, paved the way for work to start on the iron ore operation once financing was confirmed. AAP
SDL Price at posting:
34.0¢ Sentiment: None Disclosure: Held
