Shares in Sundance Resources have been placed in a trading halt ahead of an expected takeover announcement by suitor China’s Hanlong Mining.
In a statement to the Australian Securities Exchange on Monday, Sundance company secretary Brian Conrick said the halt was requested pending a revised agreement by Hanlong.
Sundance shares last traded at 39 cents, and an announcement is expected to be made to the market before Wednesday’s start of trade.
Sundance chairman George Jones last week told the company’s annual general meeting the long-awaited Hanlong takeover could be signed off before Christmas.
Sundance on Friday signed an agreement that it says paves the way for the development of the company’s Mbalam iron ore project in Cameroon.
The company said the Mbalam deal would lead to issuing of a mining permit and commencement of construction that brought it a step closer to a scheme implementation agreement (SIA) with Hanlong.
‘‘No one needs reminding that the Hanlong transaction has taken longer than we initially envisaged,’’ Mr Jones said in a statement delivered on his behalf at the annual general meeting in Perth.
‘‘It has undeniably been one of the more challenging deals I have executed in nearly 40 years as a banker and director of public companies.’’
Sundance is developing the $4.7 billion Mbalam iron ore project in west Africa but it is dependent on a larger partner, such as Hanlong, providing funding.
Earlier this month Hanlong secured $US438 million ($425 million) from a Chinese bank to fund its acquisition of Sundance.