On Life, love and Politics

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Sundance raises cash for Cameroon iron plan November 9, 2009

Filed under: Society/Societe — kikenileda @ 7:39 PM
Tags: , ,

By Tansa Musa

YAOUNDE, Nov 9 (Reuters) – Australian miner Sundance
Resources (SDL.AX) has raised A$85 million ($79 million) from
institutional investors to advance its Mbalam iron ore project
in Cameroon, the company said on Monday.

According to the agreement, 567 million shares will be
issued at A$0.15 per share, subject to shareholder approval.

Proceeds will be used to complete a definitive feasibility
study of the Mbalam project, undertake drilling to define more
high-grade mineralisation and provide general working capital.

"We have deliberately targeted a new investor base to
broaden the reach and exposure of the company to the
international market ahead of our proposed project financing
activities in 2010," managing director Don Lewis said in a
statement.

Sundance Resources submitted a feasibility study on Mbalam
to the Cameroonian government last month, projecting the Central
African country would receive some $5 billion in royalties,
taxes, and dividends during the 25-year life of the mine.


The project, some 400 km (250 miles) southeast of the
capital Yaounde, holds an estimated 2.5 billion tonnes of
hematite, a mineral form of iron oxide. The company hopes to
produce some 35 million tonnes per year.

Sundance said last month it was putting back its target for
initial production at the project to 2013 from 2011 because of
the global economic slowdown which has seriously impacted iron
ore markets and the availability of project finance in 2009.

http://www.reuters.com

 

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