rescue plan in place for oakajee

http://www.heraldsun.com.au/business/rescue-plan-in-place-for-oakajee/story-fn7j19iv-1226158508793
Rebecca Le May From: Herald Sun October 05, 2011 12:00a


SUNDANCE Resources chairman George Jones will push to save the troubled Oakajee port development now that the iron-ore explorer is to be taken over by China's Hanlong in a $1.65 billion deal.

Mr Jones said yesterday that he expected to continue playing a key role in West Australia's mining sector after the takeover was completed.

Sundance yesterday confirmed it was backing Hanlong's bid after the suitor increased its original 50c-a-share offer - a $1.43 billion valuation - to 57c a share. The takeover could be complete by May if Sundance shareholders vote for the transaction in April.

Mr Jones said Hanlong's offer was conditional on Sundance securing approval to mine in the republics of Cameroon and Congo, where the Australian group owns its flagship Mbalam iron-ore project. Sundance was likely to meet the condition within the next eight weeks, he said.

Mr Jones, a well-known Perth mining identity, shot to international prominence last year when he emerged from retirement to resume his role with Sundance after all its board members were killed in a plane crash in West Africa. He said he would continue as chairman of Gindalbie Metals, which will need Oakajee in about five years when production at its flagship Karara Project in the Midwest increases to 16 million tonnes a year.



The Oakajee development is in doubt because would-be customer Sinosteel has mothballed a $2 billion iron-ore project, while developer Murchison Metals has said it does not have enough funds for the project.