Sundance Resources is likely to end its takeover talks with Hanlong Mining and look for another Chinese suitor.
China's Hanlong was unable to meet Tuesday's financial deadline for the $1.3 billion takeover of the Africa-focused iron ore hopeful.
By the close of trade on Wednesday, the Australian Securities Exchange had not received any announcement from Sundance.
Investors have already priced in the likelihood of the deal falling over, with shares in Sundance last trading at 21¢ due to Hanlong's inability to secure finance and serious leadership problems.
Sundance was placed in a trading halt on March 20.
Last week Hanlong told Sundance the credit approved term sheets required to be provided under the scheme implementation agreement as part of the takeover would not be delivered as planned, meaning either party could terminate the agreement.
Some analysts say Perth-based Sundance could now be broken up and sold off after Hanlong failed to bring the deal to a head.
Taking over Sundance would allow a player, such as a state-backed Chinese entity, to take control of the multibillion-dollar Mbalam iron ore project in Cameroon, near the Congo border.