Hanlong Africa Mining has secured a fresh round of finance from a Chinese bank to fund its acquisition of Sundance Resources, the takeover target says.
Sundance said in a statement Hanlong had secured a financier commitment letter (FCL) from China Everbright Bank Co for $US438 million ($A425.39 million).
The new finance, coupled with the previously announced $US1.022 billion in commitments from China Development Bank, was in excess of the amount required by the Scheme Implementation Agreement (SIA), Sundance said.
"Following certification by Hanlong and its legal advisors, the Sundance board has concluded that the Everbright FCL is acceptable for the purposes of the SIA," Sundance said.
The Everbright FCL replaced the finance commitment previously provided by Bank of Deyang Co, Sundance said.
Sundance was developing the $4.7 billion Mbalam iron ore project in West Africa, but it was dependent on a larger partner, such as Hanlong, providing funding.
Sundance shares were up 0.7 cents, or 2 per cent, to 35.7 cents at 8.30am.