Sundance Resources Has Talked with Parties Including Glencore-Source

   By Gillian Tan 
 

SYDNEY--Sundance Resources (SDL.AU) has held talks with parties including Glencore International PLC (GLEN.LN) about the sale of a stake in its flagship Mbalam iron ore project, a person familiar with the matter said Tuesday.

The talks are taking place amid worries that China's Hanlong Mining may fail to complete its 1.38 billion Australian dollar (US$1.4 billion) takeover of Sundance, which is being advised by UBS AG. It wouldn't require parties to acquire any equity in Australia-listed Sundance, the person said.

A credit approved term sheet from Hanlong's financiers, China Development Bank and China Everbright Bank Co, is due March 26. The person said it isn't clear whether Hanlong would meet this deadline.

Sundance said in February the iron ore project, which straddles the border of the Republic of Cameroon and the Republic of Congo, will cost around A$5 billion to build. The project is targeting annual production of 35 million metric tons of iron ore, used to make steel.

-Write to Gillian Tan at [e-mail]

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