SDL - Sundance Resources

The reason Sundance Resources Market cap is plummeting is that investors were expecting a finance solution as apart of the EPC that was announced on 06/06/2014, as per the announcement to the ASX on the 7th of August 2013:
7 August 2013
Sundance issues tender documents for Mbalam-Nabeba Project
Sundance Resources Ltd (ASX: SDL) advises that it has commenced issuing tender documents relating to
financing and construction of the infrastructure for its Mbalam-Nabeba Iron Ore Project (“the Project”).
Tender documents for the Project’s port and rail infrastructure are being provided to a number of
International Engineering, Procurement and Construction (“EPC”) contractors that have proven track
records in building successful projects of large scope and scale. Six of these groups are Chinese.
Sundance will also issue term sheets for Project equity and take-or-pay contracts over iron ore produced
at Mbalam-Nabeba. The Company envisages that the negotiations for the take-or-pay contracts and
Project equity agreements will be completed this calendar year.

As per the announcement to the ASX on the 6th of June Sundance is now in the position of having to arrange finance for the construction of the port and rail. This was not what I was expecting:
"Discussions are well advanced with a wide variety of potential funding
partners; Export Credit Agencies, Development Funds and Commercial
Banks have already expressed interest in providing debt funding.
- Sundance aims to achieve Financial Close by mid-2015."

As per the cash flow report for the 31st of March 2014, Sundance' cash burn was $7,981,000 for the quarter of which $3,500,000 was accounted for by administration. With cash at the end of the quarter 0f just $26,289,000, it is almost inevitable that the board is going to have to raise further capitol, almost certainly leading to further dilution for existing shareholders.

All in all I see very little in the future to stimulate Sundance's market cap and almost certainly an event likely to put further downward pressure on the share price, exacerbated by a board who is beginning to be known for over promising and under delivering. President Biya isn't getting any younger, who knows if he will still be around in 12 months, I'm sorry to say but I can only see Sundance's share price falling until project finance is confirmed. In my opinion, Without the finance the EPC isn't worth the paper it's written on.
Good luck to all long term holders, mine are going into the bottom draw.

Doesn't this just keep going from one disaster to another, looks to be completely doomed to fail now. Al time lows of sub 5 cents last couple of days. People including me have dropped a fair bit of coin on this dud!

RIP Hanlong Mining.
Chinese mining tycoon executed for murder.

A Chinese mining billionaire said to have links with disgraced former security tsar Zhou Yongkang and who once launched a bid for Australia's Sundance Resources has been executed for multiple murder.

Liu Han, his younger brother Liu Wei and three accomplices were condemned to death in May for "organising and leading a mafia-style group", murder and other crimes.

Liu Han led private company Hanlong, which is based in the southwestern province of Sichuan and launched a takeover bid of more than $US1 billion ($A1.29 billion) for Sundance, a listed Australian iron ore firm, in 2011.

But the deal collapsed in 2013 after the Chinese firm failed to follow through. Chinese media reports said at the time that Liu Han had been detained.

Source: Yahoo7 - 9th Feb, 2015

Has Sundance Resources been thrown a lifeline?

MOU signed between Sundance, Cam Iron and Tidfore

Sundance is pleased to announce that it has signed a binding Memorandum of Understanding (“MOU”) with Tidfore Heavy Equipment Group Co. Ltd (“Tidfore”) and Cam Iron S.A. (“Cam Iron” a subsidiary of Sundance which has a mining permit application over the previous EP92 in Cameroon (“Parties”)). The purpose of the MOU is to provide a framework for cooperation between the Parties and their joint venture partners in order to establish the required consortium of expertise to fund or assist in sourcing the funding to construct the infrastructure and to bring the Project into operation.

Tidfore is a private Chinese company established under the laws of the Peoples Republic of China. Tidfore is involved in supplying, manufacturing and installing high-end material handling, port and offshore engineering equipment.

Tidfore has signed a Joint Venture Framework Agreement (“JV”) with China Civil Engineering Construction Corporation (“CCECC”). CCECC is a subsidiary of the state-owned enterprise China Railway Construction Corporation (“CRCC”). The JV defines the principle rights and obligations of both parties. In particular, Tidfore has responsibility for the port construction and CCECC for the railway construction and assisting Cam Iron and Congo Iron S.A. (“Congo Iron” a Sundance subsidiary which holds the Nabeba permit in Congo) and financial institutions to negotiate project loans and project financing.

Under the MOU, Sundance will sell 51% of its ownership in Cam Iron to Tidfore for a value to be agreed or independently valued once:

• Cam Iron obtains title to the tenure over the area covered by the previous EP92 for a minimum of three years. Currently, Cam Iron has a mining permit application lodged over this area;
• the Government of China approves the provision of Sinosure insurance in order to enable Chinese funders to consider funding the Project; and
• formal agreements have been agreed and executed.

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Any SDL holders or followers have a view on this development? Share price is up 40% to $0.007 this morning.

Sundance resources to delist, I wonder if there has been any pressure applied to the African governments regarding permits?
Could it be a heads up, for other companies with exposure to Africa?
From the article:

• Sundance Resources (SDL) will delist from the ASX on December 21 amid ongoing disputes with the governments of Cameroon and Congo
• Permitting issues for the company's Mbalam-Nabeba Iron Ore Project, spanning the border of Cameroon and Congo, will require resolution
• If suitable terms can't be met with the governments in question, the cases will go to arbitration at the International Chamber of Commerce
• The disputes mean the company can't satisfy ASX listing rules and will have to be delisted
• Plans to convert $132 million in debt notes have also been stymied, unless amendments are made to the agreement with noteholders
• If the debt can't be serviced, Sundance will have to go into administration
• Sundance Resources has been suspended since September 10, with shares frozen at 0.55 cents.

Permit issues
The company is involved in permitting disputes for the Mbalam-Nabeba Iron Ore Project, spanning the border of Cameroon and Congo.

The company became aware on December 7 that the Congo Government had issued a decree which appears to revoke Sundance's mining permit.

The permit is held by SDL subsidiary, Congo Iron. The withdrawal decree has not yet been published in the Official Journal of Congo or formally provided to Congo Iron, but the document appears to bear the signatures of the President of Congo, the Minister of Mines and Geology, the Minister of Tourism and Environment, and the Minister of Finance and Budget.

Sundance believes the revocation of the permit constitutes a serious breach of existing agreements.

In a similar-but-different dispute with the government of Cameroon, Sundance subsidiary Cam Iron has also had permitting issues.

Cam Iron applied for an exploitation permit on October 9, 2009. The relevant minister did not reject or otherwise process Cam Iron's exploitation permit application within the 90-day time limit, meaning it had been deemed as granted.

Stolen by a Chinese company. Kleptomania and contempt

Dona Ferentes said:

Stolen by a Chinese company. Kleptomania and contempt

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The belt and road initiative, if you don't do as we say you either get a belt, or hit the road.
I hope Mr Andrews is taking note, but somehow I doubt it.