China's Sichuan Hanlong Group offered A$1.2 billion ($1.3 billion) in cash for the shares of Sundance Resources Ltd it doesn't own to gain control of a $4.7 billion iron ore project in West Africa.

Hanlong, which owns 18.6 percent of Sundance, offered 50 cents a share for the Perth-based company, valuing it at A$1.4 billion, Sundance said in a statement. The offer is priced 25 percent higher than Sundance's close on July 15.

Chinese companies are scouring the globe for investments in steelmaking raw-material assets to feed surging demand in the world's fastest-growing major economy. Buying Sundance will give Hanlong control of its Mbalam iron ore mine, port and railroad project that straddles the border of Cameroon and Republic of Congo.

"The board considers that the terms of the offer do not provide adequate value or certainty to Sundance shareholders and that it intends to engage in discussions with Hanlong about the terms of its proposal," Sundance said in the statement.

Sundance, which is also seeking partners to help fund the project, said it will continue talks with potential partners, the statement said.

Sundance, advised by UBS AG, Clayton Utz and Citic Securities Co, will tell the market of any developments, the company said today.