Chinese firm Hanlong Mining Investment has made a 100% bid for Sundance Reosurces at $ .50 a share.
Hanlong is already the miner’s major shareholder, holding an 18.6% stake in Sundance.
However the bid is conditional on a majority Sundance board support.
Sundance’s board advised shareholders to take no action, saying that “the terms of the offer do no provide adequate value or certainty to the Sundance shareholders and that it intends to engage in discussions with Hanlong about the terms of its proposal”.
Sundance is being advised by UBS AG, Clayton Utz and CITIC Securities.
While it is considering the offer, it is remaining focused on potential joint venture partners for its Mbalam iron ore project in Africa.