Ken Talbot, a non-executive director of Queensland-based resource investment company Talbot Group, and the founder of Australian coal producer Macarthur Coal Ltd., is raising his stake in the West Africa-focused and Perth-based iron ore company Sundance Resources to 22.14 percent.
Accordingly, Mr. Talbot will purchase a further 62.5 million shares worth AU$5 million (about $3.2 million) in the iron ore explorer. Mr Talbot's investment company Talbot Group is the largest shareholder in Sundance Resources with a 19.74 percent stake.
Sundance will also offer a share purchase plan to other eligible shareholders.
The company said the funds raised would strengthen its financial position and underpin continued development at its Mbalam iron ore project in Cameroon on the west coast of Africa to 2010.
Sundance chief executive Don Lewis said the funding would allow the company time to develop arrangements with potential partners and ensure it was positioned to advance the Mbalam project when global financial conditions improved.