posco deal is the one sdl should have made!

Hey Guys

Been a long time since I posted on SDL! Still reeling about this ridiculously low takeover offer!

I saw this article and it reminded me of the day when POSCO actually posted on their corporate website the successful JV with Sundance Resources for the Mbalam Project!

This is the deal that SDL should have made, for a 50-50JV with Korea's POSCO!

Anyhow, good luck to you all.

Cheers Nectar

http://www.proactiveinvestors.com.au/companies/news/25377/legend-mining-signs-mou-with-posco-for-ngovoyang-iron-ore-project-cameroon-25377.html


Legend Mining signs MOU with POSCO for Ngovoyang iron ore project, Cameroon
Thursday, February 16, 2012 by Christine Feary
An infrastructure agreement with Sundance Resources has attracted a major potential joint venture partner for Legend’s Ngovoyang Project in West Africa, where access to infrastructure is key to unlocking the region's rich mineral prospects. An infrastructure agreement with Sundance Resources has attracted a major potential joint venture partner for Legend’s Ngovoyang Project in West Africa, where access to infrastructure is key to unlocking the region's rich mineral prospects.

Legend Mining (ASX: LEG) and POSCO (NYSE:PKX) have signed a Memorandum of Understanding (MOU) for a joint venture in relation to Legend’s Ngovoyang iron ore project in Cameroon.

Negotiations are at an advanced stage for the agreement of a joint venture between the two companies.

Legend managing director Mark Wilson said the MOU was a “huge vote of confidence” in Legend’s Ngovoyang project.

“We look forward to working closely with POSCO over the coming months to finalise an exploration joint venture agreement,” Wilson said.

“After a review of numerous iron ore projects in the region, POSCO was primarily attracted to Legend’s Ngovoyang project due to its attractive infrastructure.”

The MOU is non-binding and non-exclusive.

Legend has an extensive 2,900 square kilometre land holding in the Republic of Cameroon, prospective for gold and iron ore.

Diamond drill assays released in November 2011 returned commercially significant intercepts of:

- 116.2 metres at 26.2% iron, including 79.1 metres at 29.7% iron; and
- 80.5 metres at 36.6% iron.

Both holes ended in high grade, plus-35% iron mineralisation.

These results confirm the magnetite potential of the Ngovayang Project based on assays from Melombo East, as the company works towards an exploration target.

South Korea-based POSCO has interests in engineering and construction, power generation and natural resource development around the world and is now reportedly focused on opportunities in Africa.

Sundance infrastructure agreement

The big drawcard for POSCO was the infrastructure available at Ngovoyang, with the project supported by a rail and port access deal struck in 2011 with fellow Cameroon-focused Australian iron ore company Sundance Resources (ASX: SDL).

Under the agreement, the two companies will examine ways for Legend to use Sundance’s proposed infrastructure and rail and port haulage.

This infrastructure forms part of Sundance’s Mbalam Iron Ore Project, located on the border of Cameroon and Congo.

Both Mbalam and Ngovoyang are located in the south of the Republic of Cameroon, with Sundance’s proposed rail route passing close to Ngovoyang.
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