Hopes are fading for a successful takeover of Sundance Resources Limited (ASX:SDL)
after its suitor hit another hurdle in its pursuit to acquire the West Africa focussed iron ore developer.
China's Hanlong Mining has failed to meet a critical funding deadline to prove it can finance the proposed $1.3 billion takeover.
Sundance and Hanlong have now entered into a five-day consultation period ending on April 3, after which either can terminate the scheme implementation agreement if a new agreement is not reached.
The news comes after Hanlong’s Chairman was accused of money laundering last week and allegedly arrested by Chinese police.
Shares in Sundance Resources last traded at $0.21 before entering into a trading halt last Wednesday and are expected to resume trading before trading commences on Monday April 8, 2013.
Sundance Resources reported a net loss $14.1 in the first half of the 2013 financial year.