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Sundance share up 5% on takeover reports

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SYDNEY, Dec 31 AAP

December 31 2012, 10:35AM

Sudance Resources shares have opened 15.6 per cent higher on Monday, following reports that a privately owned Chinese company is finalising the acquisition of the Australian miner.

At 1022 AEDT, Sundance shares were up five cents, or 15.6 per cent, at 37 cents.

Xinhua, citing officials from Hanlong Group, based in southwestern China's Sichuan province, said on the weekend that Hanlong plans to complete the acquisition of Sundance Resources Ltd for 45 cents (50 US cents) per share by March 1, after submitting paperwork to the Australian Securities and Investments Commission.

Sundance controls the Mbalam iron ore mine, which straddles Cameroon and the Republic of Congo.

It is believed that the move would give China a stronger role in setting global iron ore prices.

Hanlong is seeking a partnership with Chinese state-owned companies and investing $US5 billion ($A4.84 billion) to develop the Mbalam project and to build a 550-kilometre railway and a shipping port, Xinhua said.