The signing of the infrastructure contract for Sundance Resources‘ Mbalam‐Nabeba iron ore project in Cameroon and Congo has been postponed.
Sundance Resources, whose shares on the ASX are currently suspended, has been advised that the proposed signing of an EPC contract between the Cameroon government and a Chinese state‐owned construction company has been postponed until market conditions improve and progress on their financing is more advanced.
The EPC contractor continues to support the project however.
Sundance had previously advised that it expected the contract would be signed during the December 2015 quarter. The postponement was unexpected for both Sundance and the Government of Cameroon given the recent advances made with the EPC contract ready for execution.
Sundance and the project continues to have the strong support of both the Cameroon and Congo Governments. The company is now assessing the impact this postponement will have on the project and will update shareholders in the near term once this assessment has been completed.
Court case update
Sundance has made significant progress in reaching a settlement with former geologist David Porter with regards to a complaint in connection with the discovery of the Mbalam-Nabeba deposit and the sale thereof to Sundance.
The company anticipates it will finalise the settlement and announce the details shortly, after which it will return to trading on ASX.
In December 2015 the Supreme Court of Western Australia ordered Sundance to pay damages in the amount of $5 37 407.23 in lieu of a grant of 10 million options.