SYDNEY (AP) — Shares in Australia-based iron ore miner Sundance Resources Ltd. jumped 7.5 percent Monday after its board accepted a reduced takeover offer from China's Hanlong Mining Investment Ltd.

Sundance said Monday it accepted a fresh 1.37 billion Australian dollar ($1.42 billion) offer, after Hanlong reduced its original offer by about one fifth.

Hanlong sliced its offer from 57 AU cents a share to 45 AU cents after Chinese regulators ordered the move following a fall in iron ore prices.

Sundance chairman George Jones said the company had decided to accept the reduced offer after extensive talks with Hanlong and after considering a range of factors, including changes in financial markets since the initial offer was made in October 2011.

"The board has reviewed in detail all the courses open to it," Jones said in a statement.

Sundance said Hanlong was confident that a final decision on the deal by its financial backer, the Chinese Development Bank, would be made in time to meet an end of December completion date.

The deal also needs final regulatory approval from China's National Development and Reform Commission.

Sundance is developing the AU$4.7 billion Mbalam Iron Ore project in West Africa but is dependent on a larger partner, such as Hanlong, providing funding.