Legend Mining Limited - Cameroon Iron Ore Explorer

Yaounde, Cameroon Africa(Cameroon News) – - Sundance Resources has entered into an infrastructure agreement with Legend Mining.
Australian Mining Company Sundance Resources who owns an iron ore project in Cameroon has inked a letter of intent with Legend Mining for securing the permission to the use their port and rail network for its Mbalam project, along the border of Cameroon and Congo.

The letter of intent indicates that the two companies who have similar projects that are located close to each other would look into how best Sundance’s planned infrastructure could offer rail and port connectivity advantages to Legend’s Ngovoyang iron ore project, in Cameroon which is situated in close proximity to Mbalam.

The railway line that has been proposed by Sundance is under development and is located very close to the southern boundary of the Ngovoyang project, the two companies said on Wednesday.

“”We believe it makes a lot of sense for our two Australia-listed companies that operation near each other in West Africa to demonstrate our mutual belief and to endorse cooperation in order to bring to fruition the development of a new world-class iron-ore region,” said Sundance MD and CEO Giulio Casello.

He indicated that the results of tests undertaken in this region have proven that there is huge scope for the potential in this region could move up to 100-million tons a year, or more. However, in order to get to this potential, the basic hurdle would be the availability of proper infrastructure and transportation facilities that are totally dedicated towards the export of iron-ore.

Legend MD Mark Wilson opined that by inking the deal the company would be empowered to concentrate totally on its exploration operations armed with confidence, under the shade of an agreement that provides a transport alternative for its ore to port.

Construction of Sundance’s 510-km railway line from Mbarga to the Cameroon coast is scheduled to start later this year, pending government approvals and securing project finance.

Subject to entering into agreements with the governments of Cameroon and the Congo, and obtaining the relevant approvals from those governments, as well as securing appropriate project funding, Sundance planned to start construction of the Mbalam project late in 2011, with a targeted first iron-ore shipment during the last quarter of 2014.

The project is estimated to be able to support production of 35-million tons a year for more than 25 years.