Hanlong Mining's long-running takeover play for Sundance Resources took a step forward yesterday, with the Chinese suitor injecting $5 million cash, through a convertible note facility into its Perth-based iron ore target.
Sundance managing director Giulio Casello, who was attending a China iron ore conference in Beijing yesterday, described the funding as an "encouraging step" that demonstrated Hanlong's ongoing commitment to complete its acquisition of the company. Mr Casello said the funding would help Sundance's exploration program and development of its $4.7 billion Mbalam iron ore project in Cameroon.
The Hanlong takeover, which is centred on the Mbalam project, has suffered ongoing delays since it was announced in October 2011.
The latest delay came earlier this month when the Chinese National Development and Reform Commission (NDRC) extended its provisional approval to July 30.
Sundance is waiting on credit approved term sheets from Hanlong's financiers, China Development Bank and Everbright, by March 26.
The funding injection came as Mr Casello told reporters in China yesterday that Hanlong had been in talks with four state-owned steel mills to find a partner for the Mbalam project.
He said it would to help Hanlong secure final approval from NDRC for the $1.4 billion takeover, which is priced at 45¢ a share.
Sundance shares continue to languish well below the Hanlong bid price, yesterday rising 1¢ to 30¢.
Mr Casello also confirmed that Sundance remained in talks with other potential partners for Mbalam.
SDL Price at posting:
29.0¢ Sentiment: Hold Disclosure: Held
