Sundance Resources Limited has terminated the Scheme Implementation Agreement with Hanlong  Mining Investment Limited under which Hanlong was to have acquired 100 per cent of Sundance. Sundance has decided to terminate the SIA because the funding condition was not met and after being informed by Hanlong that it was unlikely to meet the other required conditions.  As a result of the termination of the SIA, the adjourned meeting of Sundance shareholders that was scheduled for 7 May 2013 will not proceed. “Whilst it is disappointing after all this time that we will not complete this transaction, the Board of Sundance believes it is in its shareholders’ best interests to terminate the agreement with Hanlong,” Sundance Chairman George Jones said. “This will enable us to focus all our efforts on discussions with other parties which have expressed strong interest in the Mbalam-Nabeba Project.”

As well as terminating the SIA, the convertible note Subscription Agreement with Hanlong also terminates effective as of midnight on the evening of 8 April 2013.  This means that the Tranche 2 and Tranche 3 subscriptions will not proceed.  The existing A$5 million Tranche 1 convertible notes will be escrowed for six months from 8 April 2013 and, subject to conditions, the Maturity Date of these notes is now extended to 30 June 2014.

Hanlong has requested the withdrawal of the National Development and Reform Commission (“NDRC”) provisional approval granted to Hanlong and extended by NDRC earlier this year.  This removes Hanlong’s exclusivity as proponent of the Mbalam-Nabeba Project in China.
Over the past 18 months, there have been substantial achievements in respect to the growth and development of the Mbalam-Nabeba Iron Ore Project, located in Cameroon and the Republic of Congo.

These include:
Increase in Ore Reserves (Probable) from 352.3 million tonnes to 436.3 million tonnes at 62.6% Fe
Increase in High Grade Hematite (Direct Shipping Ore-quality) Resources (Indicated and Inferred) from 521.7 million tonnes to 775.4 million tonnes at 57.2% Fe.
Increase in Itabirite Resources (Indicated and Inferred) from 2.3 billion tonnes to over 4 billion tonnes at 36.3% Fe.
Completion of environmental approvals in Cameroon and the Republic of Congo for the mines, port and railway.
Signing of the Mbalam Convention in Cameroon including agreement on key financial terms.
Issuance of the Nabeba Mining Permit by Presidential Decree for the Republic of Congo.
"Sundance’s Mbalam-Nabeba Project is significantly more valuable today than when the Hanlong bid was first made,” Mr Jones said.

“Sundance believes that it continues to receive support from the Governments of Cameroon and the Republic of Congo and from China for this Project.  Sundance is engaging with other potential Chinese strategic partners with a view to developing the Project. " “At the same time we will also progress discussions with non-Chinese parties.” “The Mbalam-Nabeba Project has been globally recognised as an excellent asset which is financially robust and will unlock a new world-class iron ore region in Africa.  We are confident that we can find a suitable partner to help us bring this Project into production.”