Perth-based iron ore hopeful Sundance Resources Ltd has raised $10 million through a placement to AMCI Holdings Pty Ltd and associated resources fund Triangle Resources Fund.
Perth-based iron ore hopeful Sundance Resources Ltd has raised $10 million through a placement to AMCI Holdings Pty Ltd and associated resources fund Triangle Resources Fund.
AMCI, which is also backing the Pallinghurst bid for Consolidated Minerals Ltd, has had a long association with Sundance chairman George Jones through principal Hans Mende.
The placement comes after coal baron Ken Talbot and property investor Ralph Sarich each snapped up $20 million worth of Sundance shares in a $50 million placement last month.
The company plans to use the money to accelerate work on its Mbalam iron ore project in Cameroon, held by its 90 per cent owned subsidiary Cam Iron SA.
The full text of a Sundance announcement is pasted below
Sundance Resources Limited (ASX: SDL) is pleased to announce that it has secured the backing of another key strategic investor to support its growth plans in the international iron ore industry following completion of a $10 million share placement comprising 25 million shares at 40 cents per share to AMCI and the Triangle Resources Fund (Aust) LP, a global resources fund backed by the principals of AMCI.
The share placement to Triangle Resources Fund complements the recently concluded $50 million share placement underpinned by Sundance's largest shareholder, Talbot Group Holdings, and Western Australian-based investor, the Sarich Group. The placement further strengthens Sundance's balance sheet and increases its cash reserves to approximately A$83 million.
The share placement is within the limits set out in the ASX Listing Rules and will be issued under the Company's 15% placement capacity. Following allotment of the shares issued under the placement, Sundance will have approximately 1.825 billion shares on issue. The additional funds raised through the placement will further reinforce Sundance's strategic focus on expanding the resource definition program at the Company's 90%-owned Mbalam Iron Ore Project in Cameroon, West Africa.
Triangle Resources Fund is a specialist resources investment vehicle backed by the principals of AMCI, led by prominent international mining executive, Mr Hans Mende. AMCI is a privately owned resources company with interests in mining, infrastructure, trading and investment - particularly in coal and iron ore. Founded in 1986 by Mr Mende and Mr Fritz Kundrun, AMCI has grown to become one of the largest private coal companies in the world and it is actively looking for further investment opportunities across the resources sector. Mr Mende is also a member of the Board of Directors of the Brazilian iron ore company MMX that is developing multiple world-class iron ore projects in Brazil.
Commenting on the announcement, Sundance's Chairman, Mr George Jones, said: "This significant strategic investment follows my recent site visit to the Mbalam Iron Ore Project where I was accompanied by a senior AMCI geologist. The investment by Triangle Resources Fund in Sundance is a strong endorsement of our long-term vision for the Mbalam Project and the potential of the region as an emerging iron ore province of global significance."
"Together with Talbot Holdings, the Sarich Group, and the other institutions and strategic investors who have supported us to date, the principals of AMCI and Triangle Resources Fund share our enthusiasm for the Mbalam Project and support our view that early definition of substantial resources at Mbalam will expedite evaluation and development of the project."
Sundance's Managing Director and CEO, Mr Don Lewis, said: "We are very pleased to welcome Triangle Resources Fund to our share register. Their investment continues a long-standing relationship between Mr Mende, and our Chairman, George Jones.
"The groups associated with Mr Mende have outstanding expertise in the global bulk commodities sector, including strategic capabilities in mining, infrastructure development and commodity marketing, particularly in iron ore and coal. They also have ready access to global capital markets. I am confident that Sundance can secure significant benefit from this strategic expertise and capacity," Mr Lewis added.
The key objectives of Sundance's 2007 exploration program are, firstly, to define a JORC compliant Inferred Mineral Resource over the Mbarga Prospect and, secondly, to confirm the broader potential of the Company's exploration permit to support a 1 billion tonne high-grade hematite resource. This will lay the foundations for the Bankable Feasibility Study to be completed in 2008.