Iron ore project developer Sundance Resources (ASX: SDL) has highlighted a six-month extension of the Mbalam Convention as a key highlight of a successful March quarter. The convention, extended by the Cameroon Government, is valid to September 14 and allows Sundance time to work with Chinese partner Tidfore Heavy Equipment on advancing development plans for the world-class Mbalam-Nabeba iron ore project.
- MOU signed between Sundance and Tidfore
- Cameroon Government extends Convention to 14 September 2018
- $1.067 million on hand at 31 March 2018
Sundance Resources Limited (ASX: SDL) (“Sundance” or “Company”) provides the following information about activities for the quarter ended 31 March 2018:
MOU SIGNED BETWEEN SUNDANCE, CAM IRON AND TIDFORE
On 22 January 2018 Sundance announced that it had signed a binding Memorandum of Understanding (“MOU”) with Tidfore Heavy Equipment Group Co. Ltd (“Tidfore”) and Cam Iron S.A. (“Cam Iron” a subsidiary of Sundance which has a mining permit application over the previous EP92 in Cameroon (“Parties”)). The purpose of the MOU was to provide a framework for cooperation between the Parties and their joint venture partners in order to establish the required consortium of expertise to fund or assist in sourcing the funding to construct the infrastructure and to bring the Mbalam-Nabeba Iron Ore Project (“Project”) into operation.
Tidfore is an innovation-oriented integrated engineering enterprise group, whose business scope mainly covers equipment manufacturing, general contracting and supporting services. The Company is a leading supplier of material handling equipment, port equipment and offshore engineering equipment, and offers a comprehensive service delivering everything from design, research, development, fabrication, sales, installation, commissioning and after-markets to financial leasing.
As one of the leading private groups in the Chinese heavy industry, Tidfore has made successful contributions to several infrastructure projects including a port expansion project in Sierra Leone, deep sea port and super-highway project in Nigeria, and a steel and cement plant project in Liberia.
Tidfore enjoys a good reputation in the African Market. Tidfore has signed a Joint Venture Framework Agreement (“JV”) with China Civil Engineering Construction Corporation (“CCECC”).
CCECC is a subsidiary of the China Railway Construction Group (“CRCC”) and has been listed among the world’stop 100 international contractorsfor 17 consecutive years by the Engineering News Record “ENR”. The business activities of CCECC have covered more than 50 countries and regionsin Asia, Africa, America, Europe and Oceania. By undertaking numerous railways, bridges, buildings and municipal works in overseas markets and with its excellent performance and quality service, CCECC has won many national titles and honours.
The JV defines the principle rights and obligations of both parties. In particular, Tidfore has responsibility for the port construction and CCECC for the railway construction and assisting Cam Iron and Congo Iron S.A. (“Congo Iron” a Sundance subsidiary which holds the Nabeba permit in Congo) and financial institutions to negotiate project loans and project financing.
Under the MOU, Sundance will sell 51% of its ownership in Cam Iron to Tidfore for a value to be agreed or independently valued once:
- Cam Iron obtains title to the tenure over the area covered by the previous EP92 for a minimum of three years. Currently, Cam Iron has a mining permit application lodged over this area;
- the Government of China approves the provision of Sinosure insurance in order to enable Chinese funders to consider funding the Project; and
- formal agreements have been agreed and executed.