So much for fears about mining resource taxes or the carbon tax.

Over $2.3 billion in resources sector takeover deals were announced yesterday.

Sundance Resources revealed it had received a $1.43 billion offer from a major shareholder and Santos moved to snatch the rest of Eastern Star Gs in a deal valued at more than $900 million (see second story).

Coming on top of the $4.7 billion bid launched last week for Macarthur Coal by Peabody Energy of the US and steel giant, Arcelor Mittal and $2 billion worth of coal deals by Gloucester Coal, merger and acquisition activity in the resources sector is alive and lucrative.

Altogether, more than $9 billion worth of deals have been started or completed in the Australian resources sector in the past week or so.

And if you add in the $14 billion value for the BHP Billiton offer for US gas group, Petrohawk, the value of the deals involving Australian companies announced in the past week soars to more than $23 billion.

Sundance Resources was the latest.

It told the ASX yesterday that the takeover offer, came from Chinese group, Hanlong Mining Investment, which already owns 18% of Sundance. The offer price is 50 cents a share.

Hanlong picked up that stake in March from the investment vehicle of Sundance's late director Ken Talbot. Talbot and five other Sundance executives were visiting the remote project last year when they were killed in a light plane crash.

For Hanlong, a privately-owned Chinese conglomerate, its the second local bid in a week: it offered $145 million for small WA iron ore hopeful, Bannerman resources a week ago.

Sundance shares traded at 40 cents a share last Friday, making the takeover offer a 25% premium.

But that was up 19% from last Monday, a big rise in a market that fell over the week.

But yesterday the company's shares jumped as much as 27.5% to a high of 51.5c after trading started on the ASX in the wake of the bid news.

Sundance shares ended 22.5% higher at 49 cents.

The market reckons there's no one else in the offing by pricing the shares sunder the bid price of 50c, but that won't be enough to win the deal, the Chinese company will have to lift its price to win approval from the board.

The offer price is substantially under the 52 week high for Sundance shares of 66.5c reached in early January this year.

(BHP Billion offered a 40% premium for Petrohawk in its $US15 billion deal on Friday. That's a different country and different industry, but the principal is the same. Offer a bigger premium; get an agreed bid with the directors on board).

Sundance's board told shareholders signalled they wanted more by telling shareholders to take no action at this stage and suggested that a bit more on the offer price might see a greenlight.

"The terms of the offer do not provide adequate value of certainty to Sundance shareholders," the company said.

The statement said the board would discuss the terms of the proposal with Hanlong.

In other words, if Hanlong increases its offer, it becomes an agreed bid.

And the market took the hint and up went the shares, briefly over 51c before retreating.

Sundance says it will continue negotiations with potential strategic partners for a joint venture to develop its Mbalam iron ore project in the Republics of Cameroon and Congo.

Sundance hopes to produce 35 million tonnes a year of iron ore from the Mbalam project on the borders of Cameroon and the Republic of Congo.

Mr Talbot and five other Sundance executives were visiting the remote project last year when they were killed in that light plane crash.

Around two hours after the Sundance statement was released, Hanlong released a statement of its own which read:

"Hanlong confirms it has approached Sundance with a proposal to acquire Sundance through a Scheme of Arrangement that is subject to a number of conditions, including regulatory and government approvals.

"Hanlong notes that talks between Sundance and the Republic of Cameroon and Republic of Congo Governments regarding the Mining Conventions for the Mbalam and Nabeba Iron Ore Projects are progressing.

"The proposed acquisition price of A$0.50 cash per share values Sundance at A$1.44 billion and represents a premium of:

25.0% to the closing price of Sundance shares on 15 July 2011?"

45.0% to the one month volume weighted average price (VWAP) to 15 July?" 2011

37.1% to the three month VWAP to 15 July 2011?"

"Managing Director of Hanlong Mining Investment Dr. Xiao Hui (Steven) said he looks forward to discussing Hanlong's proposal with Sundance further with a view to progressing the proposed transaction.

"Hanlong currently holds approximately 18% of Sundance.

"Merrill Lynch and Mallesons Stephen Jaques have been appointed by Hanlong as financial and legal advisers respectively for the transaction," the statement concluded.