NDRC extends provisional approval for Sundance acquisition

By: Natalie Greve 

JOHANNESBURG (miningweekly.com) – The Chinese National Development and Reform Commission (NDRC) has extended its provisional approval for Sichuan Hanlong Group’s (Hanlong’s) acquisition of ASX-listed Sundance Resources to July 30.

In granting the extension, the NDRC has attached a special requirement that Hanlong would have to enter into an agreement with a Chinese corporation with sufficient capability to assist with the development of Sundance’s Mbalam-Nabeba project.

Hanlong must sufficiently advance such an agreement with the proposed Chinese partner for the China Development Bank to issue its credit approval term sheet for Hanlong’s acquisition of Sundance.

Sundance reported in December that Hanlong had agreed to provide a convertible note facility to Sundance on favourable terms for up to A$15-million to support the company’s working capital requirements.

Sundance chairperson George Jones welcomed the NDRC’s ongoing commitment to completing the Hanlong transaction.

“Hanlong has advised us that it is in advanced discussions with a prospective partner,” he said in a statement.

Sundance noted that Hanlong expected the term sheets to be issued on or before March 26.
The Republic of Congo-based Mbalam-Nabeba project was expected to produce 35-million tons of direct shipping ore a year for around ten years.

Edited by: Chanel de Bruyn

Read the original article