Sundance Resources (ASX: SDL) has reached agreement with the Government of Cameroon to extend the Mbalam Convention by at least six months, and potentially up to 12 months, as it advances talks with potentail project developpment partners and financiers. The Convention covers the Cameroon-based part of Sundance’s Mbalam-Nabeba iron ore project, which runs into neighbouring Republic of Congo.
Sundance Resources Limited (ASX: SDL) (“Sundance” or “Company”) is pleased to announce that it has reached an agreement with the Government of Cameroon to initially extend the Mbalam Convention by 6 months to 26 January 2018. A further 6 month extension will be given if Sundance can show progress on funding the Project either by itself or with a creditable partner.
Sundance’s subsidiary Cam Iron SA (“Cam Iron”) has a mining permit application over the land covered by Exploration Permit (“EP92”). In order for the Government of Cameroon to proceed to grant the mining permit application, the conditions precedent referred to in the Mbalam Convention need to be satisfied by the CP Long Stop Date. With the agreement of the Government of Cameroon to extend the Mbalam Convention, Cam Iron now has an initial 6 months to satisfy these conditions precedent.
EP92 has now expired as it has reached the maximum number of extensions possible under the Cameroon Mining Code. With the extension of the Mbalam Convention and with Cam Iron’s mining permit application over the land area covered by the previous EP92, Cam Iron believes it has priority over that area for the purposes of having the mining permit granted to it.
Sundance Resources chief executive officer and managing director Giulio Casello said:
“We are pleased with the time extension but more so the partnership that has been reinforced by the Prime Minister of Cameroon and his teams in recent meetings in Cameroon.
“We look forward to continuing to work together with the Cameroon Government to develop the Project.”
Sundance has asked the ASX to lift the trading suspension over the company’s shares.