Sundance eyeing Mbalam deal by year's end

Group says discussions with potential strategic investors are ongoing.

Sundance Resources Ltd says it is aiming to reach an agreement on the future of its Mbalam-Nabeba project by the end of the year, as talks with potential strategic partners continue.

Earlier this year, Sundance walked away from a scheme implementation agreement with Hanlong after the Chinese group said it was unable to advance the project.

"Sundance has identified a number of interested parties and possible structures that it believes could underpin the development of this world-class project, transforming the company in the process," the group said.

Sundance said there were a number of scenarios being discussed including the mine being directly owned by Sundance alone, or by Sundance and a strategic partner.

The group also said it was considering a plan whereby the infrastructure could be owned entirely by Sundance or the port and rail could be part of an infrastructure joint venture involving a consortium of funds, as well as a scenario in which an independent infrastructure arrangement would see Sundance pay a tariff to the infrastructure consortium.

"A number of companies and prospective consortia, from both inside and outside of China, have expressed strong interest in the above structural scenarios to develop the Mbalam‐Nabeba iron ore project," Sundance said.

Sundance said its cash balance at June 30 was $19.6 million.

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