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Sundance is holding out for 20 percent more than the A$0.50 a share that Hanlong has offered, according to a source familiar with the talks. Jones declined to comment on what price he would consider acceptable.

Hanlong's valuation on Sundance is lower than Sundance's view as the Chinese group expects development costs for Sundance's Mbalam iron ore project in West Africa will be 30 percent higher than its $4.6 billion plan.

"The comments by Hanlong potentially, I'd suggest, are negotiating tactics," Jones told reporters at the Diggers & Dealers conference, adding there was "plenty of margin" in Sundance's cost estimate.

Hanlong also argues project delays could result in Mbalam iron ore hitting the market just as a flood of new supplies come online from Rio Tinto (RIO.AX)(RIO.L) and BHP Billiton (BHP.AX)(BLT.L), further depressing its value.

With Hanlong holding 18.9 percent of Sundance, it would be hard for anyone else to top its offer, so Sundance shareholders could face a sharp fall in share price if Hanlong refuses to raise its offer.

Hope this passport issue and insider trading issue doesn't rock the boat too much as this last statement sounds fairly ominous with the market climate