hanlong waiting...

Sundance fresh delay on $1.4B bid by Hanlong

MELBOURNE, Feb 16 (Reuters) - Sundance Resources said it has pushed out by two months hopes for approval from Cameroon and Congo for its Mbalam iron ore project, further delaying a A$1.34 billion ($1.44 billion) bid for Sundance by China's Hanlong Mining.

Sundance shares fell as much as 7 percent on news of the delay on the deal, which was first announced last July.

Sundance and Hanlong have agreed to extend the date for conditions on the takeover to be met by eight weeks to April 27, Sundance said on Thursday, after Cameroon set up a ministerial committee to oversee the approvals process for the mine.

"The close involvement of key senior government ministers at this stage in the process is expected to assist in a swift and efficient approvals process," Sundance said in a statement.

Hanlong, which already owns 18.6 percent of Sundance, wants it for the $4.7 billion Mbalam project straddling the border between Cameroon and the Republic of Congo.

Mbalam is expected to produce 35 million tonnes a year of iron ore. This compares with a forecast 55 million tonnes this year from from Fortescue Metals Group, the world's number four iron producer.

The Republics of Cameroon and Congo both need to issue mining permits for Mbalam.

For the deal to go ahead, Hanlong has agreed to line up credit from the China Development Bank within three weeks after Sundance secures mining permits from the two countries. The funding support had been due last November.

Sundance shares last traded at A$0.407, 29 percent below Hanlong's offer of A$0.57 a share, reflecting uncertainty over the fate of the deal.

($1 = 0.9329 Australian dollars)
(Reporting by Sonali Paul; Editing by Richard Pullin)