UPDATE 3.15pm: Sundance Resources has announced the signing of the Nabeba Mining Convention with the Republic of Congo.
The convention outlines the fiscal and legal terms and the conditions for the development and management of the Nabeba iron ore project.
Sundance said the agreement was signed at a ceremony in the country's capital Brazzaville today.
The convention clears the way for the company to mine at the project for 15 years with options to extend up to 15 years and lays down the terms for a mining royalty of 3 per cent, a five-year corporate tax waiver, a 10 per cent government stake in the subsidiary operating the mine and other exemptions from fees, levies and charges.
Managing director Giulio Casello said the convention was the culmination of the strong support shown by the Congo government since the company began exploration at Nabeba in 2010.
"In just four years we have achieved extraordinary success in the Republic of Congo, with the Nabeba deposit now boasting a significant high-grade hematite reserve as well as substantial itabirite resources," he said.
"This world-class inventory will underpin a successful mining operation for many years, generating substantial economic benefits, including employment opportunities for the Congo people."
Sundance said the convention also represented another step towards finalising the preconditions for financing and construction of the broader Mbalam-Nabeba iron ore project, which straddles the border of the Republic of Congo and Cameroon.
The company is planning a 35-million-tonne-a-year, direct-shipping ore operation at Mbalam-Nabeba for an initial 10 years.
Sundance shares were up 0.2 cents, or 2.33 per cent, to 8.8 cents at the close.