Talbot to lift Sundance Resources stake

Coal baron Ken Talbot will increase his holding in Sundance Resources to 22 per cent after purchasing $5 million worth of shares in the iron ore explorer.

Mr Talbot's investment vehicle, Talbot Group Investments Pty Ltd, is the company's largest shareholder with a 19.74 per cent stake. It has agreed to purchase a further 62.5 million shares at eight cents each.

Mr Talbot is a non-executive director of the company and the founder of Queensland coal producer Macarthur Coal.

Sundance will offer a share purchase plan to other shareholders, with financial services firm BBY agreeing to underwrite $5 million of the offer.

The company said the funds would be used to strengthen its financial position and underpin the continued development of its majority-owned Mbalam iron ore project in central west Africa.