Australia's Sundance Resources has recommended a sweetened AUD 1.65 billion all cash bid from Hanlong Mining, giving the Chinese firm control of a major iron ore mine project in west Africa.

Hanlong, the biggest shareholder in Sundance with 18.6%, raised its offer to 57 cents per share from 50 cents previously to secure an agreed deal and unanimous board recommendation.

Mr George Jones chairman of Sundance said in a statement that “Hanlong's offer means that the substantial financial support needed for this integrated port, rail and mine project will now be available.”

Sundance said the deal will provide a substantial amount of the funding needed to construct its Mbalam mine, along with a port and rail line to initially ship 35 million tonnes of iron ore a year directly to steel producers.

The Mbalam project requires significant infrastructure work, including 600 kilometers of rail lines and could cost AUD 4 billion to complete.

The takeover is conditional on regulatory approvals by the governments of Australia, the Republic of Cameroon, the Republic of Congo and China.

(Sourced from Reuters)