The exploration of iron ore reserves in Mbalam, East Region by Cam Iron will in the days ahead receive a boost following additional 40 million dollars ( about FCFA 20.8 billion) funding pumped in by the mother company, Australian-based Sundance Resources Limited.
According to a release posted on the company’s website, the money raised through a placement with a 0.345 dollars interest rate per share; will be used to assist Sundance Resource Limited to undertake early works at the port and rail areas to help maintain the construction timeline, continue drilling on the previously announced exploration targets as well as help to provide general working capital for the company. Commenting on the fundraising, Sundance’s Managing Director and Chief Executive Officer, Giulio Casello, is quoted to have expressed gratitude with the amount. “The strong demand from institutional investors resulted in the placement being significantly oversubscribed. Funds raised allow Sundance to continue to develop the Mbalam Project which will further Sundance’s progress towards becoming a world-class producer,” he reportedly said. The equity raising is said to be consistent with Sundance’s rights under the Amended and Restated Scheme Implementation Agreement signed with Hanlong (Africa) Mining Limited last May 2012. While waiting for a mining license, Sundance and Hanlong; the release further states continue to expect the scheme of arrangement to be implemented by mid November 2012. Government, Sundance Resources Limited and Hanlong Group officials on April 26, 2012 at the Prime Minister’s Office signed the Joint Statement on the key terms and principles of the convention on Mbalam Iron Ore mining project with hopes that the Mining Convention would be signed in August 2012. Information from Cam Iron says the Mbalam Iron Ore Project that straddles the border of the Republic of Cameroon and the Republic of Congo proposes development of mines in both countries which together will produce 35 million tonnes per annum. Within the framework of the project, Cam Iron will construct a 510-km rail line dedicated to the transport of iron ore from the Mbarga mine to the Cameroon coast with a 70-km rail spur line to connect to the Nabeba mine in Congo as well as build a deep water iron ore export terminal in Lolabe- Kribi which will be capable of taking bulk “China Max” iron ore carriers.