what if deal falls over

Not sure if its been posted here before but George Jones not bothered if Hanlong deal falls over as he believes the resource is top grade and will get developed. I personaly agree and would prefer to see a tie up with Core Mining whose Avima project is located in the Republic of Congo just like Sundance's Mbalam (Rep Cameroon+Rep Congo) and Core Mining are planning on producing 20Mtpa by 2015 from the Avima Project. The Avima mine, port and rail project could cost between $3 billion and $4 billion.

Would it not be better to combine Core Mining's Avima and Sundance's Mbalam and produce 55Mtpa , and since they would share the rail and port the development cost would be reduced substantially.Surely the cash flow from 55Mtpa would pay that development cost back fast and have control of the railway.

Core Mining would make an ideal partner as its backers are Severstal (Russia's largest steel maker 16.5% ) and Glencore one of the worlds leading integrated producers and marketers of commodities. Core Mining's Avima project currently has a total maiden Global Inferred Mineral Resource Estimate of 1,012Mt of material in two domains at a zero % Fe cut off

– 455Mt @ 56.12% Fe in a hematite-rich domain
– 557Mt @ 40.29% Fe in a BIF-rich (itabirite) domain

• Global Inferred Mineral Resource Estimate covers a strike length of approximately 5.3km of prospective itabirite, which is characterised as a magnetic anomaly, and is semi-continuous for up to 16km in the immediate Avima Ridge area

• Drilling campaign for 2011 is continuing at Avima, where a total of 32,000 metres is expected to be drilled during the year. Planned drilling programme for 2012 of an additional 60,000 metres

• Opportunity for resource upgrades at Avima

– The Company are targeting up to 5.3 billion tonnes of combined BIF and hematite material located in two areas along strike and adjacent to Avima Centre, at Avima West and Avima East (“the Exploration Target”)

http://www.bloomberg.com/news/2010-10-07/core-mining-s-iron-mine-in-congo-republic-could-cost-4-billion-ceo-says.html


http://www.perthnow.com.au/business/local-business/sundance-chairman-george-jones-stands-by-hanlong-mining/story-e6frg2s3-1226206559159


SUNDANCE Resources chairman George Jones is not stressed if Hanlong Mining's bid does not get off the ground as a major Chinese bank fails to meet a ?confidence? deadline.

Mr Jones was today facing shareholders for the first time since Sundance accepted the higher $1.6 billion offer made in October at the company’s annual general meeting in Perth today.

In responding to shareholder questions, Mr Jones acknowledged the difficulties Hanlong was experiencing – including two of its former directors involved in insider trading allegations – but stood by the Chinese company.

“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, acquired earlier in the year, had made it hard for the company to look at other partners for its flagship Mbalam iron ore project, which straddles the border of Cameroon and the Democratic Republic of Congo.

SUNDANCE Resources' suitor Hanlong Mining has failed to secure a letter of confidence from China Development Bank for its takeover bid. End of sidebar. Return to start of sidebar.
Just before the shareholder meeting, Sundance announced that Hanlong had failed to secure a ‘letter of confidence’ from China Development Bank (CDB), which was needed before November 28.

The letter is one of the conditions for the takeover bid, and today Sundance agreed to waive the condition.

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.

Sundance is still negotiating with the governments of Cameroon and Congo – where Mbalam is located – and Mr Jones today said that finalisation of the conventions, which includes mining permits, is expected in the coming months.

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.”

Shareholders are due to vote on the offer in April or May next year.

Shares in Sundance closed at 42.5c today.