The government of Cameroon has granted ASX-listed Sundance Resources a six-month extension to its Mbalam Convention in order for it to secure an equity partner to fund the development of its Mbalam-Nabeba iron ore project situated across Cameroon and the Republic of Congo.
On literal reading of the extension that would be to 26 July 2018 but the company understands that the intent of the extension is six months from the approval of the extension which takes it to 14 September 2018.
Sundance Resources will seek clarification on this and advise the market as soon as it can.
On 31 July 2017 the company announced that it had reached an agreement with the government to extend the Mbalam Convention by six months to 26 January 2018, and then a potential further six months could be granted if Sundance Resources could demonstrate progress toward funding the Mbalam-Nabeba project either by itself or with a credible partner.
Following recent meetings between representatives of the Government of Cameroon, Sundance Resources and Tidfore, the government of Cameroon agreed to Sundance’s request for an extension to the Convention.
During this six-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 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,” says Sundance Resources CEO and MD Giulio Casello.
“We will keep the market informed of progress in our discussions with Tidfore, CCECC and other potential partners and our ongoing engagement with the government.”