Termination of the takeover deal between Sundance Resources and Chinese group Hanlong is a step closer, after Hanlong conceded it could not meet Tuesday's deadline for delivery of credit papers needed to demonstrate financial backing for the deal.
The failure to produce credit approved term sheets means the two parties will now go into a five-day consultation period, after which one or both can agree to officially terminate the deal.
The missed deadline adds to a long list of occasions that Hanlong has failed to produce evidence that it can fund its proposed $1.3 billion takeover of Sundance.
The saga has been dragging on for more than 18 months, and now appears to be in its death throes.
The takeover was supposed to give Hanlong control of Sundance's Mbalam iron ore deposit in Cameroon. But with the era of high iron ore prices gradually coming to an end, the investment credentials of the project are slipping.
Sundance shares are in a trading halt and are not expected to return to trading until April 8.
Discussions between Sundance and Hanlong come amid reports Hanlong chairman Liu Han has been detained by Chinese police.