Posted in | Iron Ore | Mining Business

Sundance Resources Moves Closer to a Takeover by Hanlong Mining

Sundance Resources is likely to accept the takeover offer initiated by Hanlong Mining. The board of directors of Sundance Resources, have endorsed the $1.65 billion takeover plan of the Chinese company.

Hanlong has increased its original 50 cents per share offer to 57 cents per share to gain the approval of the board of directors. The Mbalam iron ore project lying across the African nations of Cameroon and Congo are the primary reason why Hanlong Mining is interested in Sundance Resources.

George Jones the chairman of Sundance Resources said that it was a good outcome for all the stakeholders. He summed it up by saying they think they paid a little bit too much and we think they didn't pay quite enough, which probably means you got the number about right.

The deal will go through in two stages. The first will involve Sundance Resources gaining the mining approvals from the local governments to develop the mines. The company will then receive financing from Hanlong to develop the mines.

The company had faced a major tragedy as its entire board was killed in a plane crash merely 16 months ago while flying to the location of the African mine. The new board has recommended the Hanlong deal and now is subject to shareholder approval.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, content production, design, animation, database and networking, software, and editing. Joel has been with AZoNetwork since its inception in 2000.

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