The Government of Cameroon has granted Sundance Resources (ASX: SDL) a six-month extension to the Mbalam Convention, which underpins the Perth company’s world-class iron ore project. The extension runs to September 14, reflecting the government’s confidence that Sundance is progressing the project’s development. Sundance has struck a memorandum of understanding with Chinese group Tidfore on Mbalam’s development.
Sundance Resources Limited (ASX: SDL) (“Sundance” or “Company”) is pleased to announce that the Government of Cameroon has granted a six month extension to the Mbalam Convention. On literal reading of the extension that would be to 26 July 2018 but the Company understands that the intent of the extension is 6 months from the approval of the extension which takes it to 14 September 2018. The Company will seek clarification on this and advise the market as soon as it can.
Sundance had announced on 31 July 2017 that it reached an agreement with the Government of Cameroon to extend the Mbalam Convention by six months to 26 January 2018, and then a potential further six months could be granted if Sundance could demonstrate progress toward funding the Mbalam-Nabeba Project (“Project”) either by itself or with a credible partner.
Following recent meetings between representatives of the Government of Cameroon, Sundance and Tidfore, the Government of Cameroon agreed to Sundance’s request for an extension to the Convention.
During this 6 month extension Sundance needs to demonstrate to the Government that a credible partner who is interested in the development of the Project has taken equity. If that occurs, the Government has advised that it will take all useful measures to assist Sundance in carrying out this Project.
Sundance Chief Executive Officer and Managing Director Giulio Casello said: “Sundance acknowledges the ongoing support of the Government of Cameroon of our efforts to progress development of the Mbalam-Nabeba Iron Ore Project.
“This is a world-class iron ore project and Sundance is committed to working towards a development that will deliver benefits to all stakeholders.
“Sundance will keep the market informed of progress in our discussions with Tidfore, CCECC and other potential partners and our ongoing engagement with the Government of Cameroon.”