Sundance Resources Ltd has opted to terminate its agreement with Sichuan Hanlong Group after the latter failed to secure funding for its bid. The bid submitted required Aus$1.14 billion or US$1.18 billion in a bid to purchase the rest of the Australian firm.
Other preconditions were not met by Hanlong according to Sundance. The Perth based company is now in discussion with other possible investors as to their possible participation in the Mbalam-Nabeba iron ore project.
The October 2011 agreement fell through after Hanlong's Chairman Liu Han was reported to have been detained by Chinese police authorities. If the purchase pushed through, then Hanlong would have gained control of the Mbalam iron ore project located in Congo and Cameroon.
According to Sundance Chairman George Jones in a statement, "The board of Sundance believes it is in its shareholders' best interests to terminate the agreement. Sundance's Mbalam-Nabeba project is significantly more valuable today than when the Hanlong bid was first made."
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