Shares in Sundance Resources (ASX:SDL) jumped 15% on Monday after the Australian company received approval for a section of its Mbalam project from the Republic of Congo.
Sundance is the target of a $1.2 billion takeover bid by Hanlong, a private Chinese company.
Hanlong already owns 14.15% of Sundance and adjusted down by more than a fifth its 57 Australian cents per share bid for the company after Chinese iron ore demand took a dip. Iron ore price have since recovered more than 50%.
Monday's gains lifted Perth-based Sundance to 37 cents share affording it a $1 billion market value, compare to the revised offer of 45c.
Hanlong is in the process of lining up funding for the Mbalam project which could cost upwards of $5 billion to develop.
Sundance has total hematite resources of 775.4 million tonnes at 57.2% Fe at the project which straddles Congo and Cameroon. Of that a reserve of 309 tonnes at 62.25% Fe is at the Nabeba deposit in Congo.