Hanlong Mining’s proposed takeover of Sundance Resources Limited
(ASX:SDL) has progressed after Sundance inked a deal which paves the path for the development of its flagship $4.7 billion Mbalam Iron Ore Project in West Africa.
The agreement brings Sundance closer to a scheme implementation agreement with Hanlong Mining, with the proposed takeover having secured financing from China in October.
With the iron ore developer’s annual general meeting on Friday, Chairman George Jones conceded on the same day the challenging Hanlong transaction has taken longer than he initially thought it would.
Addressing the board’s decision to accept a lower bid price Mr Jones blamed turmoil in world financial markets as a key factor for agreeing to a revised price and timetable for the takeover.
Hanlong launched its takeover in October 2011 and shareholders are expected to vote on the offer this month.
Sundance Resources recorded a net loss of $25 million in the 2012 financial year.
