Iron anvil falls on Sundance

Things are not looking good for the iron ore juniors. From BS:

Shares in Sundance Resources remain in a trading halt, as a potential takeover deal with suitor Hanlong Mining appears to be falling apart.

Sundance released a statement on Monday saying Hanlong wanted to delay the deal because it could not secure credit approval by the China Development Bank by December 13 as part of a revised scheme implementation agreement.

Sundance is developing the $4.7 billion Mbalam iron ore project in Cameroon in west Africa but it is dependent on a larger partner, such as Hanlong, providing funding.

I will be very surprised if any iron ore junior can get debt funding for expansion henceforth.

David Llewellyn-Smith

Comments

  1. Reminds me of:

    HnH: [i/o price] …. I’m going mega-short the obvious player.

    3d1k: Who, Sundance 😉

  2. “could not obtain credit” probably should be something like, “Holy deflation, batman – we shouldn’t pay for this now when it will probably be cheaper tomorrow”!

    lol