Sundance Resources (ASX:SDL) should trade firmer after appointing Mota-Engil Africa as the contractor to build the US$3.5 billion port and rail infrastructure for the Mbalam-Nabeba Iron Ore Project in Cameroon.
Mota-Engil Africa’s role includes detailed design, construction, testing and commissioning of the 510 kilometre railway from the Mbarga Mine in Cameroon to the Mineral Terminal Facility at Lolabe on the west coast of Cameroon; and the 70 kilometre rail spur line from the Nabeba Mine in the Republic of Congo to the Cameroon railway.
It also includes a 35 Mtpa deep water Mineral Terminal Facility, including stock yards, capable of loading ‘China-max’ vessels.
Mota-Engil Africa has extensive experience in Sub-Saharan Africa, including ongoing construction of a bulk commodity railway in Malawi operated by Brazilian mining group Vale.
Standard Bank, Africa’s largest Bank, has been appointed as Financial Adviser and Mandated Lead Debt Arranger for the Project.
Discussions are well advanced with a wide variety of potential funding partners; Export Credit Agencies, Development Funds and Commercial Banks have already expressed interest in providing debt funding.
Sundance aims to achieve Financial Close by mid-2015, and construction is expected to take 3.5 years following Financial Close.
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