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Sundance closer to Cameroon agreement

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PERTH, Nov 30 AAP

November 30 2012, 12:54AM

Takeover target Sundance Resources has signed an agreement which will pave the way for development of the company's Mbalam iron ore project in Cameroon.

Sundance said the agreement brought the company a step closer to a Scheme Implementation Agreement (SIA) with suitor Hanlong Mining.

The Mbalam deal will lead to issuing of a mining permit and commencement of construction, Sundance said in a statement.

Sundance said the people of Cameroon would benefit from the economic and social benefits which will flow from their government's support for the project.

Hanlong chairman Liu Han said he looked forward to bringing the project into operation.

Earlier this month Hanlong secured $US438 million ($A425.39 million) from a Chinese bank to fund its acquisition of Sundance Resources.

Sundance is developing the $4.7 billion Mbalam iron ore project in west Africa, but it is dependent on a larger partner, such as Hanlong, providing funding.