/* Style Definitions */
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
font-family:”Times New Roman”;
Sundance Resources has recommended a sweetened $1.65 billion all-cash takeover bid from Hanlong Mining to shareholders.
The offer of 57 cents a share gives Chinese based Hanlong control of a major iron ore mine in western Africa.
Sundance chairman George Jones said in a statement the deal would provide a large portion of the funding needed to construct the company’s central-west Africa Mbalam mine.
“Hanlong’s offer means that the substantial financial support needed for this integrated port, rail, and mine project will now be available,” he said.
The cost of constructing the port and rail infrastructure for Mbalam is estimated to be $US4 billion.
Sundance said once completed the project would ship around 35 million tonnes of iron ore annually.
Last month the Australian Securities and Investments Commission revealed it was investigating suspected insider trading by now former Hanlong employees.
The shady deals were alleged to have been related to the Sundance deal and another of Hanlong’s takeover targets, uranium explorer Bannerman Resources.
Last year Hanlong unveiled bold investment plans for Australia, including a goal to become the country’s “fourth force in iron ore” by forming a mining house worth $3 billion to $5 billion.