UPDATE 1.20pm: Takeover target Northern Iron has extended the deadline for final binding offers until November 20 to allow interested companies to complete their due diligence.
Perth-based Northern Iron said Essel Mining and Swiss-based trading company Prominvest were conducting the second stage of their due diligence, after launching a takeover offer for the company in July.
Essel Mining, which is a wholly owned subsidiary of Aditya Birla Group, and the bidders, Prominvest, are seeking to acquire all of Northern Iron's shares as part of a highly conditional, non-binding indicative offer.
"Northern Iron notes that there is no certainty that the strategic review will result in an offer to acquire all of the shares of Northern Iron," the company said.
In July, Prominvest submitted a $1.42 per share highly conditional, indicative, non-binding proposal that valued the company at $525 million.
Northern Iron said it would continue to update the market in relation to the process.
Northern Iron operates the Sydvaranger magnetite mine in Norway, and expects to ship 2.2 million tonnes this year.
Shares in Northern Iron closed down one cent, or 1.61 per cent, at 61 cents.