Sundance shares rise as Posco vies to be iron ore partner

By Sarah-Jane Tasker, The Australian

February 01, 2011 12:00AM
Resources' shares rose yesterday after it confirmed that South Korean steel giant Posco was in the race to become its strategic iron ore partner.
According to the junior miner, Posco is one of several companies it is talking to in its bid to advance its massive Mbalam project in Cameroon.
Shares in the company increased 8.79 per cent yesterday to 50c as the overall market fell slightly.
"As previously advised to the market, Sundance has held numerous discussions with a wide variety of international steel mills and potential strategic partners to pursue the Mbalam iron ore project in Cameroon and Congo," a Sundance statement said.
"Those discussions have involved, among others, Posco.
"However, as yet no formal agreements have been entered into with any of the various parties currently undertaking due diligence on the Mbalam iron ore project."
According to Sundance, it met recently senior Posco personnel who visited Cameroon, Democratic Republic, Zimbabwe and Ethiopia on a trip sponsored by the Korean ambassador for energy and resources.
Sundance chairman George Jones said the company was close to finalising talks and he was still hoping to announce a strategic partner by the end of next month.
The market is expecting the strategic partner to be Asian, after deals the company announced last year.
Sundance has already signed a memorandum of understanding with China Railway Construction Corporation to study a railway for the Mbalam iron ore project.
A similar deal with China Harbour Engineering Company was also signed, with the company looking at the construction of a port in Cameroon.(sourced:theaustralian.com.au)