Sundance Resources Limited (ASX:SDL) Waives Highly Confident Letter and Proceeds with Scheme with Hanlong (Africa) Mining Investment Limited
The Sundance Board believes it is in the best interests of all shareholders to waive the requirement for this letter, as it does not affect the current Scheme timetable. Hanlong have reassured the Company of its determination to continue with the Scheme and its confidence that subject to successful completion on acceptable terms of the Mbalam Convention, this Scheme will proceed as intended.
Mr George Jones, Chairman of Sundance, said that even without the letter he believed the Scheme with Hanlong could progress under the current indicative timetable and be completed by May next year.
"The Board of Sundance remains firmly of the view that completing this Scheme of Arrangement with Hanlong is an attractive outcome for shareholders who will receive a significant premium price of 57 cents cash per share compared to Sundance's current share price of around 42 cents. I received a letter from Hanlong which has assured us of Hanlong's genuine interest in acquiring Sundance," Mr Jones said.
"Although it is unfortunate that the letter has not been able to be achieved as expected, the Sundance Directors and I continue to stand by the belief that in the absence of a superior proposal, this continues to be in the best interest of all shareholders."
Sundance and Hanlong will continue to work together to confirm the ratification of the Mbalam Convention in the Republic of Cameroon and the Mining Permit in the Republic of Congo on acceptable terms by 29 February 2012.
Once that has been achieved and proof of availability of finance via a credit approved term sheet is obtained, the Scheme will proceed to the first court hearing, publication of the Scheme Booklet, and the holding of the Scheme Meeting.
Completion of the transaction is subject to the necessary shareholder and regulatory approvals and that the Mbalam Convention becomes binding in Cameroon and the granting of the Mining Permit in the Republic of Congo. Following this, the parties will request that the Court approves the Scheme.
About Sundance Resources Limited
Sundance Resources Limited (ASX:SDL) (PINK:SUDCF) is an international resources company developing the Mbalam Iron Ore Project in the Republic of Cameroon and the Republic of Congo, in central west Africa. Sundance Resources is listed on the Australian Securities Exchange and is part of the S&P ASX200 Index.
The Company's corporate head office is based in Perth, Western Australia, home to the world-class iron ore deposits of the Pilbara region. This location means the Company has assembled a management and technical team that draws readily on the skills of some of the world’s most experienced iron ore specialists as it continues to cement its position as an emerging force in the global iron ore sector.
Sundance Resources Limited