Shares in Sundance Resources jumped after the company secured a mining permit from the Republic of Congo for its Nabeba iron ore deposit, the last condition it needed to meet under a takeover deal with China's Hanlong.
"This clears all requirements from Sundance to achieve the recently announced Federal Court of Australia approved scheme meeting to be held on Friday, February 1," Sundance said in a statement.
The stock was also boosted by weekend reports out of China that Hanlong plans to complete the acquisition of Sundance at 45 cents a share by March 1, after submitting paperwork to ASIC.
Nabeba is part of Sundance's Mbalam iron ore project, which straddles Cameroon and the Republic of Congo.
Sundance said the Nabeba deposit would help underpin stage one of the project, in which 35 million tonnes of direct shipping ore would be produced each year for a minimum of 10 years.
The company has already secured approvals from Cameroon for the project to go ahead.
Hanlong is seeking a partnership with Chinese state-owned companies and investing $US5 billion ($A4.84 billion) to develop the Mbalam project and to build a 550-kilometre railway and a shipping port, Chinese news agency Xinhua said.Sundance shares were up 4.5 cents, or 14.06 per cent, to 36.5 cents at 7.45am.
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