Sundance and Equatorial sign MOU

THE BOURSE WHISPERER: ASX-listed Africa-focused iron ore chums, Sundance Resources and Equatorial Resources have signed a Memorandum of Understanding.

The MOU will examine how Equatorial may gain access to the rail and port infrastructure associated with Sundance’s Mbalam/Nabeba iron ore project in West Africa.

 

Proximity of Sundance Resources’ Mbalam/Nabeba project to the Badondo
project as well as to other neighbouring prospects along the proposed
rail corridor. Source: Sundance Company announcement

The MoU also covers other opportunities for regional co‐operation between the two Australian‐based companies.

Equatorial owns the Badondo iron project in the north‐west of the Republic of Congo.

Badondo is located approximately 90 kilometres south‐west of Sundance’s Nabeba deposit and its proposed rail infrastructure.

Equatorial has much confidence in the Badondo project and has set it a global exploration target of between 1.3 and 2.2 billion tonnes of iron mineralisation.

Sundance said as part of the MoU, it will advance discussions with Equatorial regarding the potential for access to the Mbalam infrastructure.

This could be via direct investment or by a haulage services agreement.

The MoU with Equatorial follows Sundance’s recent announcement of the finalisation of a MoU with Core Mining, which owns the Avima project, which is located 65km west of the Nabeba deposit.

Sundance currently plans to transport ore from the Mbalam/Nabeba project deposits in the Republic of Congo and Cameroon via a dedicated rail line to a custom‐built iron ore export terminal at the Port of Lolabe in Cameroon, both of which are proposed to be constructed by Sundance.

“Sundance is leading the development of a world‐class iron ore region and our first mover advantage with having our DFS complete and project funding on the table from Hanlong and CDB demonstrates that we are ready to start unlocking the potential of this area,” Sundance Resources chairman George jones said in the company’s announcement to the Australian Securities Exchange.

“We strongly believe that regional cooperation by way of infrastructure sharing is a logical and pragmatic approach to fast tracking development for the benefit of everyone involved, including the Governments and people of these countries.

“Sundance has now formalised discussions on this issue with three neighbouring project operators, Legend Mining in Cameroon and Core Mining and Equatorial Resources in the Republic of Congo, and we are in talks with others.

“These discussions highlight the growing number of options coming onto the table in respect to project development scenarios and the funding and use of related infrastructure that Sundance is planning to build in the foreseeable future.”