Sundance Resources Ltd. (ASX:SDL) announced that its subsidiaries, Cam Iron SA and Congo Iron SA, have signed a 10-year offtake agreement with Noble Resources International Pte Ltd., a global commodities trader.
The company describes the move as a “pivotal step towards development” of its Mbalam-Nabeba iron ore project, located on the border between Cameroon and the Republic of the Congo.
Transaction highlights include:
- Noble will buy all product produced for the first 10 years of operation outside that allocated to project equity participants.
- Project equity participants can buy up to 50 per cent of the production.
- Sales will be based on international standard pricing benchmark (Platts IODEX 62% Fe CFR China less freight costs) Free on Board (FOB) Lolabe Cameroon.
- Contract will help facilitate completion of debt funding for the construction of the port, rail, and mines.
Giulio Casello, managing director at Sundance, commented:
This contract represents another key step in our strategy to develop the Mbalam-Nabeba Project. Having Noble sign such an extensive sales agreement is a huge vote of confidence in the Project and we believe it will give financiers the comfort they need to provide debt funding.