MARKETS SPECTATOR: Sundance boogie

Sundance Resources is in discussions with Chinese, Indian, European and North and South American investors who may be interested in taking a stake in its $775.4 million African iron ore project, a person familiar with the matter told Markets Spectator.

The person, who spoke on condition of anonymity, would not disclose which companies are speaking with Sundance or how much they are prepared to invest in the Sundance project – which straddles the border of Congo and Cameroon. The Mbalam-Nabeba iron ore project has 57.2 per cent Fe, or iron content, according to a Sundance ASX statement.

At 1322 AEST Sundance shares rose 0.9 of a cent, or 11 per cent, to 8.9 cents, after earlier rising as much as 1 cent, or 13 per cent, to 9 cents.   

Sundance has been in discussions with potential investors for about two months following the collapse of Hanlong's takeover offer in April after a scandal engulfed the Chinese group. Sundance shares have plummeted 76 per cent this year, according to Bloomberg data.   

Sundance sad in an ASX statement today it had “been approached by numerous groups” and discussions were “underway with strategic investors who have expressed interest in playing a key role” in exploiting the Mbalam-Nabeba iron ore deposits.