SUNDANCE Resources says suitor Hanlong will not be able to meet its financial deadline for its $1.3 billion takeover of the Africa-focused iron ore hopeful.
"Sundance Resources Limited advises that Hanlong Mining Investment Ltd has given formal notice that the credit approved term sheets required to be provided under the scheme implementation agreement (SIA) will not be delivered by the due date of 5.00pm (AWST) on 26 March 2013," Sundance said in a statement.
Following advice from Hanlong, the two parties are required to enter into a five-business day consultation period under the agreement, Sundance said.
This period commences on Tuesday, March 26 and concludes on Wednesday April 3.
"If the parties fail to reach agreement during that period, either party may then terminate the SIA."
Sundance expects to lift its trading halt prior to the market open on Monday, April 8.
The company said it will update the market on any material developments.
Last week Sundance said it was still in talks with Hanlong as it prepared to speak to China's National Development and Reform Commission (NDRC).
Sundance is also seeking information from Hanlong as to media speculation concerning its chairman Mr Liu Han.
Hanlong executives have faced a volley of allegations of insider trading, market manipulation and tax allegations, even as the company's overseas bankers have been talking up the company's bona fides.
Hanlong sought in 2011 to quarantine its regulatory problems in Australia, saying the three relevant executives had been stood down.
China-based Hanlong Group's proposed takeover of Sundance has dragged on for 20 months due to regulatory delays and Hanlong's inability to secure finance.
A takeover would lead it to take control of the multi-billion-dollar Mbalam iron ore project in Cameroon.
Sundance shares last traded at 21 cents a share.
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