PERTH (miningweekly.com) – The shares of takeover target Sundance Resources were suspended from trading on Wednesday, amid speculation that China’s Hanlong Mining Investment might not be able to meet the current deadline.
Sundance had requested a voluntary suspension from the ASX, stating that it was seeking verification from Hanlong that it would be able to meet its current timeline under the $1.38-billion takeover offer.
In a statement, Sundance noted that Hanlong had not yet finalised discussions with potential Chinese partners, as required by the Chinese National Development and Reform Commission, and as such, was unlikely to deliver the credit approved term sheet by March 26, as required by the scheme implementation agreement.
Reports further emerged on Wednesday that Hanlong founder Liu Han had been detained by police in Beijing.
Sundance said on Wednesday that it would be meeting with senior Hanlong personnel in the coming days to clarify the progress towards achieving the scheme implementation requirements, and to gather information on Han.
In the absence of an agreed extension, a failure by Hanlong to achieve delivery of the credit-approved term sheets would trigger a five-day good faith consultation period, followed by a ten-day termination period, in which time either of the parties could terminate the agreement.
Sundance said that it hoped to resolve these matters before April 5.
Meanwhile, the iron-ore developer also refuted claims that Hanlong had sought to renegotiate the offer price.