Shares in metals exploration company Sundance Resources (ASX:SDL) bounced 22.5% on Monday, after the company disclosed the receipt of a $0.50 per share conditional takeover offer.
The offer from Hanlong Mining Investment is a 25% premium on Sundance's closing price on Friday, and 45% to the one month weighted average trading price.
But the Sundance board said it believes that the offer as it currently stands provides inadequate value and certainty to shareholders.
Hanlong Mining has indicated that its intent to make the offer is conditional on, among other things, regulatory and government approvals.
Sundance is in talks with the governments in the Republics of Cameroon and the Congo over gaining clearance to pursue an iron ore project in the nations.
Because of the conditional nature of the offer, Sundance said it would engage in discussions about the terms of the proposal, but simultaneously continue talks over a possible joint venture for the iron ore project.
Hanlong is already Sundance's major shareholder, with a 18.6% stake.
SDL shares closed at $0.490 on Monday.
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