Iron ore explorer AustSino Resources (ASX:ANS) has terminated an agreement with a Chinese investor who last August agreed to paid $3m but has not yet paid a cent.

Guan Min Jie had agreed to subscribe for about 230.8 million shares at 1.3c each – which was a 20 per cent discount to the average closing price of AustSino’s shares over the 10 days prior to the announcement.

AustSino said it had reached an amended agreement with Mr Guan on February 15 that he would pay $2.6m by March 15 and the other $400,000 would come from another Chinese investor, Peiyu Liang, otherwise the deal would be automatically terminated.

AustSino has received the $400,000 from Ms Peiyu, but it is yet to see any money from Mr Guan.

The company believes it has sufficient funds to keep going.

Its half-year report released last week shows cash in the bank amounted to about $2.8m.

AustSino has been trying to get its $58m takeover of iron ore explorer Sundance Resources (ASX:SDL) wrapped up so it can start trading again.

Both companies have been suspended from trading since the first week of September last year.

They extended the deadline to complete the deal until March 31.

AustSino told investors today it is also exploring other funding sources.

The company has been contacted for comment.