China's Hanlong Mining Investment, today offered to buy the remaining shares it does not already own in Sundance Resources, for A$1.4 billion ($1.5 billion) in cash.

Hanlong, Sundance's majority shareholder with an 18.6 per cent stake has offered to pay A$0.50 a share, a 25 per cent premium to Sundance's closing price of A$0.40 on 16 July.

Central West Africa focused Sundance, which owns a big iron ore deposit on the border of the Republics of Cameroon and Congo, said Hanlong's offer does not provide adequate value or certainty and has urged shareholders to take no action at this stage.

The Perth-based company said it is in advanced talks with potential partners to develop its West African iron ore project, but will also talk with Hanlong about the terms of its offer.

Listed on the Australian Stock Exchange and with a market capitalisation of more than A$1 billion, Sundance is developing its flagship $4.7-billion Mbalam Iron Ore mine, which straddles the borders of the Republics of Cameroon and Congo.

Sundance has been talking to Chinese investors for funding the Mbalam iron ore project, which requires billion of dollars on investment for building of new 500-600km of rail lines, a new multi-user port at Lolabé on the Atlantic coast and other infrastructure.

Once fully developed, the Mbalam project could produce 35 million tonnes a year starting in late 2014 with stage two designed to double that capacity, with higher quality product.

Chengdu-based Hanlong, a subsidiary of the Sichuan Hanlong Group, one of China's largest private conglomerates, is an active acquirer having made substantial investments in commodities such as molybdenum, iron ore and uranium in Australia, the US, Cameroon, Namibia and within China.

It holds a wide portfolio of assets including molybdenum, lithium, gold, rare earths and zinc/lead projects and over the last two years, Hanlong has invested over $500 million across four international mining companies. The company runs 25 mining projects in China, including gold, iron ore, copper and molybdenum.

In Australia, Hanlong also holds a 57 per cent interest in Moly Mines and 11.5 per cent of uranium explorer Marenica Energy. In the US, Hanlong holds a 12.5 per cent interest in General Moly.