Sundance Resources Ltd has entered an MoU on cooperation for future provision and use of Iron Ore infrastructure with Core Mining Ltd. The infrastructure will service Sundance’s Mbalam/Nabeba Iron Ore Project. Core is a private company incorporated in the British Virgin Islands. Sundance Resources' shares plunged in 2010 after the iron ore explorer emerged from a month-long trading halt entered into due to the death of its entire board in a plane crash in Africa.
Sundance Chairman George Jones said the collaboration with Core was further evidence of the commitment both companies have to developing a new world-class iron ore region in central West Africa. According to Jones, it makes a lot of sense for the company and Core to work together given they operate near each other and both have projects with high-quality iron ore assets. Sundance estimates the two projects may produce upwards of 70 million tonnes per annum of DSO. Jones however believes long-term potential of this region could be up to 100 million tonnes per year — or more.
Under the MoU, the companies will discuss arrangements regarding the potential for Core to access the Mbalam infrastructure by way of direct investment or alternatively by a haulage services agreement. The companies' discussions on the arrangement will however not be limited to access, but over other possible infrastructure solutions. Sundance Resources last year July received a conditional takeover offer from Hanlong Mining Investment that saw its shares jump 22.5%.
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