Construction of Infrastructure Underway For Mbalam-Nabeba Project

Sundance is issuing tenders for their financing and construction by a number of International Engineering, Procurement and Construction ("EPC") contractors that have proven track records in building successful projects of large scope and scale.

Sundance Resources Ltd, an Australian firm with whom Cam Iron is partnering for the execution of the Mbalam-Nabeba Iron Ore Project in Cameroon and Congo, has commenced issuing tender documents relating to financing and construction of the infrastructure.

According to a news release posted on the website of the outfit, tender documents for the project's port and rail infrastructure are being provided to a number of International Engineering, Procurement and Construction ("EPC") contractors that have proven track

records in building successful projects of large scope and scale. The release states that six of these groups are Chinese. Their identities were however not disclosed. "Sundance will also issue term sheets for project equity and take-or-pay contracts over iron ore produced at Mbalam-Nabeba. The company envisages that the negotiations for the take-or-pay contracts and project equity agreements will be completed this calendar year," the release indicates.

Sundance Managing Director, Giulio Casello is quoted to have said that tender process was a pivotal step in the development of the project. "The interest shown in our project from a wide range of potential investors, constructors and customers has been outstanding. This reflects both the high quality of the resource and the advanced nature of the project, which is now well and truly poised for development. We are aiming to ensure that the project is in production in time to capitalise on the supply shortfall which we believe is set to emerge in the global iron ore market around 2017-2018," Giulio Casello said. The release specifies that Sundance has held discussions with all the parties that will receive the tender documents and the company is encouraged by the strong interest that has been expressed by parties in playing a role in developing what it qualified as a "world-class, high-grade iron ore project."

The Mbalam-Nabeba Iron Ore Project straddles the border of Cameroon and the Republic of Congo. The project scope will be to mine 35 million tonnes per annum from iron deposits in both Cameroon and Congo, construct a 510-km rail line from the Mbarga mine in Cameroon and a 70-km rail spur line connecting the Nabeba mine in Congo dedicated to the transport of iron ore to the Cameroon coast, and the construction of a new deep water iron ore export terminal at Kribi, which will be capable of taking bulk iron ore carriers.