Monday, 03 December 2012 14:37
Shares in Sundance Resources remain in a trading halt, as a potential takeover deal with suitor Hanlong Mining appears to be falling apart.
Sundance released a statement on Monday saying Hanlong wanted to delay the deal because it could not secure credit approval by the China Development Bank by December 13 as part of a revised scheme implementation agreement.
Last month Sundance reported that Hanlong had secured $US438 million ($425.39 million) from a Chinese bank to fund its acquisition of Sundance Resources.
"Sundance has not agreed to amend the scheme timetable," the company said in a statement on Monday.
"Sundance will consider its position when it has adequate information and will further update the market when it is in a position to do so."
Sundance is now seeking further particulars from Hanlong around the "term sheet delivery and scheme timetable consequences".
The company said the trading halt would be lifted on Wednesday.
Sundance is developing the $4.7 billion Mbalam iron ore project in Cameroon in west Africa but it is dependent on a larger partner, such as Hanlong, providing funding.
Analysts have questioned the viability of the project, given recent iron ore price volatility and its location.
The trading halt and statement come just days after Sundance signed an agreement that it said paved the way for development of the Mbalam iron ore project.
The company on Friday said the Mbalam deal would lead to issuing of a mining permit and commencement of construction and brought the company a step closer to a scheme implementation agreement with Hanlong.
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