Shares in iron ore miner Sundance Resources have surged after the Republic of Congo issued it a mining permit, and on reports that Chinese company Hanlong plans to complete a takeover of the firm by March.
Sundance shares were up 14 per cent to 36.5 cents by 10:29am (AEDT).
The company announced on Monday morning that the Ministerial Council for the Republic of Congo had approved its application to develop and mine the Nabeba iron ore deposit.
Coupled with a recently signed convention on the Mbalam deposit in neighbouring Cameroon, Sundance says the way is paved for work to start on building the Mbalam-Nabeba iron ore mine.
Sundance says the deposit should have a life well past 25 years, and will contribute substantially to Congo's economy over the next decade.
The company says approval of the mine meets the last requirement from Sundance necessary before a proposed takeover by Hanlong can go ahead.
The official Chinese news agency Xinhua is reporting that Hanlong expects to complete its takeover of Sundance by March 1.
The company is paying 45 cents a share for the Australian miner, in a deal agreed to in August.
Xinhua says Hanlong is investing almost $5 billion in the Mbalam project, including a 550 kilometre railway to transport the ore.