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.

Click here to read the full Sundance Resources Ltd. (ASX:SDL) press release.