Sundance signs Mbalam port agreement

Sundance Resources has taken another step towards developing the Mbalam Project in Cameroon and Congo, signing another agreement to investigate infrastructure for the project.

Sundance has signed a Memorandum of Understanding with China Harbour Engineering Company to establish the scope, cost and delivery of a proposed bulk materials port at Lolabe in Cameroon.

Under the terms of the agreements the parties will work together to investigate the terms under which CHEC will deliver the project.

Sundance hopes it will have an output of 35 million tonnes of iron ore per annum.

Once the investigation is finished both Sundance and CHEC may enter into a delivery contract.

Sundance chairman George Jones said he was delighted with the agreement.

"The Lolabe Port development is the gateway to export of our planned tonnages from West Africa," he said.

"CHEC is world renowned in the field of port construction with extensive experience of working in Africa.

"This follows hard on the heels of our MOU with CRCC China-Africa Ltd as to the Mbalam Rail Project."

CHEC vice president Lin Yi Chong said, "CHEC looks forward to great efforts between the two sides to develop and maintain a close relationship and to execute the Project in the earliest possible time."

See company statement below:

China Harbour Engineering Company Ltd ("CHEC'') and Sundance Resources Ltd ("Sundance") are pleased to announce that they have entered into a Memorandum of Understanding ("MOU") to establish the scope, cost and delivery programme for the proposed bulk materials port at Lolabe, Republic of Cameroon. The Port is needed to support Sundance's Mbalam Project in Cameroon and Congo, West Africa.

The MOU was signed for CHEC by Vice President, Mr Lin Yi Chong, and for Sundance by Board Chairman, Mr. George Jones.
The MOU's key agreement commits the Parties to work together to establish:
- scope, cost and programme for delivery of the Lolabe Port Project sufficient to support planned output of 35m.t.p.a. of iron ore from Sundance's proposed Cameroon and Congo Mines ("Port Project"); and
- terms of an EPC Contract under which CHEC would deliver the Port Project.

At the conclusion of that work the Parties may enter into a Delivery Contract for the Port Project. Neither Party is bound to enter into the Delivery Contract if it is not prudent to do so.

The MOU recognizes that the Lolabe Port Project will be integral with the Mine Project itself and the Mine Rail Project.

The MOU also recognizes that the Port, Rail and Mine Projects are subject to a range of conditions precedent including government approvals, funding and title requirements for the rail corridor and other assets.

Sundance Chairman, Mr. George Jones, said:
"I am again delighted to announce that we have reached this agreement with China Harbour Engineering Company Ltd. The Lolabe Port development is the gateway to export of our planned tonnages from West Africa. CHEC is world renowned in the field of port construction with extensive experience of working in Africa. This follows hard on the heels of our MOU with CRCC China-Africa Ltd as to the Mbalam Rail Project. We now have in place MOUs with two of China's leading infrastructure providers. These agreements will fix the delivery requirements for our logistics infrastructure from Mine to ship. This is another big step forward for our Mbalam Project.

CHEC, Vice President, Mr Lin Yi Chong said:
"CHEC announces its entry into the MOU for the proposed Port for the Mbalam Project. CHEC looks forward to great efforts between the two sides to develop and maintain a close relationship and to execute the Project in the earliest possible time."