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Sundance halted ahead of Hanlong news

Shares in Sundance Resources have gone into a trading halt this morning ahead of a very important week for the iron ore aspirant.

A protracted takeover bid by Chinese group Hanlong is scheduled to pass a key milestone on Thursday when paperwork confirming Hanlong's financial backing from the China Development Bank is supposed to arrive at the Perth offices of Sundance.

The takeover has been delayed several times on the back of Hanlong's inability to secure the funding, and the process suffered another blow in December when the CDB sought to conduct a review of Sundance's African iron ore project and its mining permits before confiming its financial support.

If the CDB does provide Hanlong with the "credit approved term sheet" that Sundance requires as proof of financial backing, the takeover will then progress to a scheme meeting of Sundance shareholders on Friday.

Another delay or failure to produce the term sheet could prove to be the final straw for Sundance.

Sundance shares last traded at 34 cents and have lost more than 10 per cent of their value over the past fortnight leading up to today's deadline.

The stock is expected to resume trading on the ASX by Thursday morning at the latest.