Does the closing of the Hanlong/Sundance Deal 01 March de-risk an Afferro transaction, especially with plans to build the Rail and Port Infrastructure?
Nkout would be within 50km of the proposed Rail Route.
Would the Chinese not protect against any direct competition to maintain 100% control this regions “Iron Ore” production?
Some older quotes below, cheers, Mark
“Sundance controls the Mbalam Iron Ore Mine in Cameroon and the Republic of Congo. Hanlong executives have disclosed that the company is in talks with leading state firms to jointly develop the mine.
Hanlong is investing $5 billion to develop its first mining project in Mbalam, as well as build a 550-km railway and a shipping port. It is slated to start operating in 2014, the company officials said”
“In September 2010, Sundance Resources signed a memorandum of understanding with CRCC China-Africa Construction Ltd, which outlined construction plans for a 490 km railway linking the planned iron ore mines to a proposed port near Lolabé.[2] Another Chinese company, China Harbour Engineering Co Ltd (CHEC), will build the port.”
Deal now 7 June
Sundance Resources expects suitor Hanlong Group to finalise its $1.3 billion takeover by June 7 in the wake of ongoing delays as it seeks provisional approval from Chinese regulators.
The company says the scheme will be implemented on May 27 and be finalised on June 7.
It comes a month after Sundance shares hit 37 cents following reports that Hanlong planned to complete the acquisition for 45 cents per share by March 1, after submitting paperwork to the Australian Securities and Investments Commission.
Explains AFF weakness lately, the Chinese delays as Jindal bows out and no tabled IMIC offical proposal.
Maybe soon, cheers, Mark
De-risked?
Would agree assets are de-risked,...location of Ntem,...rail and port almost assured through Chinese Hanlong/Sundance transaction but for sure these assets currently are hardly priced into todays MCap.
As for IMIC, now over a month since the Exclusivity Agreement ended and was starting to think maybe it was all just a strategic move (unofficial offer 115-140p from 31 Dec 2012) to entice Jindal into a higher bid, though they do have the mou agreements with AIOG from last year. IMIC is a shareholder AFF, only a L$26m mcap, has released a perceived valuation of AFF, though depending on due deligence? and bought more shares at 90p. One would think IMIC and backers, whom ever they are, would have c/o most due deligence crunching numbers before even releasing the 31 Dec NR.
I know from experience the Chinese Deal connection could take time but even then you would think IMIC would have had the green light from the backers to present to market an unofficial pending 115-140p deal? Now with Jindal non competing for these assets, time is no longer of the essence to move on AFF?
Just m thoughts, cheers, Mark