Terms deal paves way for offer
By Richard Fu |
June 6, 2012, Wednesday
|
Print Edition
Print Edition
CHINA'S Hanlong Mining has agreed on the key terms with Cameroon for developing an iron ore project there, opening the way for it to proceed with a long-delayed US$1.3 billion offer for Australia's Sundance Resources Ltd.
The agreement will give the Cameroon government a 15 percent stake in the Mbalam project, which straddles the country and the Republic of Congo, said a stock exchange filing yesterday by Sundance, owner of the US$4.7 billion project.
Sichuan Province-based Hanlong wants to buy Sundance for its iron ore assets in Africa, as China relies on imports of the steelmaking ingredient.
But the Sundance takeover needs approval from China's National Development and Reform Commission and Australia's Foreign Investment Review Board by the end of this month. The privately-owned Hanlong also needs to arrange funding from the China Development Bank by August 31.
Reuters had earlier reported that the bank is nervous granting a huge loan amid the current global economic uncertainties, especially when it involves private-sector companies.
But Sundance Chairman George Jones said he now looks forward to finalizing the "remaining elements" of the agreement.
Last July Hanlong announced its plan to buy the remaining shares it doesn't own in Sundance and its offer has been unanimously recommended by Sundance's directors.
The agreement will give the Cameroon government a 15 percent stake in the Mbalam project, which straddles the country and the Republic of Congo, said a stock exchange filing yesterday by Sundance, owner of the US$4.7 billion project.
Sichuan Province-based Hanlong wants to buy Sundance for its iron ore assets in Africa, as China relies on imports of the steelmaking ingredient.
But the Sundance takeover needs approval from China's National Development and Reform Commission and Australia's Foreign Investment Review Board by the end of this month. The privately-owned Hanlong also needs to arrange funding from the China Development Bank by August 31.
Reuters had earlier reported that the bank is nervous granting a huge loan amid the current global economic uncertainties, especially when it involves private-sector companies.
But Sundance Chairman George Jones said he now looks forward to finalizing the "remaining elements" of the agreement.
Last July Hanlong announced its plan to buy the remaining shares it doesn't own in Sundance and its offer has been unanimously recommended by Sundance's directors.
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