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.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.