Sundance Resources receives $40M for the Mbalam-Nabeba Iron Ore Project
Sundance Resources (ASX: SDL) has received $40 million from the issue of convertible notes
to meet pre-development capital expenditure for the Mbalam-Nabeba Iron
Ore Project in the Republics of Cameroon and Congo.
The notes
were issued to Noble Resources ($20 million) and an investor consortium
made up of investment vehicles managed by Blackstone Alternative
Solutions, the D. E. Shaw Group and Senrigan Capital.
Mbalam-Nabeba
will be carried out in two stages, the first of which involves the
production of a Direct Shipping Ore sinter fines product averaging 62.6%
iron at a rate of 35 million tonnes per annum for 12 years.
Stage
Two, which is currently at a Pre-Feasibility Stage, would then extend
the life of the operation by further 15-plus years producing high-grade
Itabirite hematite concentrate.
The project involves the
construction of a 510 kilometre rail line dedicated to the transport of
iron ore through Cameroon and 70 kilometre rail spur line connecting the
Nabeba mine in Congo.
It also includes the building of a
dedicated mineral export terminal designed for taking bulk iron ore
carriers of up to 300,000 tonnes.
