Sundance Resources has cleared another hurdle in its bid to be taken over by China's Hanlong Group by securing Australian regulatory approval for the deal.
The Foreign Investment Review Board (FIRB) said it had no objection to the takeover going ahead.
Hanlong is separately working with Chinese regulator to secure approval for the deal ahead of a June 30 deadline.
"The support shown by FIRB will assist Hanlong in obtaining the requisite approvals in China," Sundance said in a statement.
Sundance chairman George Jones said FIRB approval represented another significant step towards completion of the scheme implementation agreement, under which Hanlong will pay 57 cent a share to acquire Sundance.
Sundance owns the Mbalam iron ore project which straddles the Republic of Cameroon and the Republic of Congo.
Sundance shares were up 3.5 cents, or 10.45 per cent, to 37 cents at 1.30pm.