Sundance Resources Limited, an Australian firm that is partnering with Cam Iron to develop the multi-billion Mbalam‐Nabeba Iron Ore Project in Cameroon and Congo has fetched $40M (about FCFA 19,450,698,745.15) in the stock exchange market, through the issuance of convertible notes, to meet up with the pre-development capital expenditure of the project.
According to a release published on its website on November 5, 20 million dollars is received from Noble Resources International Pte Ltd and the other 20 million dollars from an investor consortium comprising; Blackstone Alternative Solutions, L.L.C., the D. E. Shaw Group and Senrigan Capital. “The funds will be used for a working capital and to meet pre-development capital expenditure of the Mbalam-Nabeba Iron Ore Project,” the release quotes Sundance Managing Director and Chief Executive Officer (CEO), Giulio Casello, as saying.
An annual general assembly meeting of Sundance is announced for November 29, 2013 in Perth, Western Australia, to look at the balance sheet and prospects with the shareholders.
When the mining agreement of the project was signed on November 29, 2012, Sundance was given 18 months to mobilise the project’s finances before it is served a mining permit for production to begin. Some 8.7 billion US dollars (about FCFA 4,350 billion) is needed for the project with FCFA 2,500 billion for the first phase and FCFA 2,400 billion for the second. It will produce 35 million tons of iron ore per annum and generate royalties to the tune of 600 billion US dollars in 25 years.
Cam Iron will construct a 510-km rail line for the transportation of iron ore from the Mbarga Mine to the Cameroon coast with a 70-km rail spur line to connect to the Nabeba Mine in Congo. It will also build a deep water iron ore export terminal in Lolabe-Kribi capable of taking bulk “China Max” iron ore carriers.
Sundance Resources, an Australian firm with whom Cam Iron is partnering to execute the multi-billion iron production project in Mbalam, East Region of Cameroon, has appointed David Southam as its Non-executive Director.
He took up his new function on Wednesday September 11, 2013 and Sundance Sundance Chairman, George Jones is quoted to have welcomed the appointment of Mr Southam, saying “He would bring expertise in the key areas of project finance, equity capital markets and commercial negotiations at a time when the Company is establishing its funding and development plan for the Mbalam-Nabeba Iron Ore Project in Cameroon and the Republic of Congo.”