Allegiance says third party will not make offer

SYDNEY, Feb 12 (Reuters) - Australia's Allegiance Mining Ltd AGM.AX said on Tuesday a third party had ended due diligence and would not be making a proposal because it could not comply with a deadline Allegiance had set.

No third party is currently conducting due diligence, Allegiance said.

Allegiance has rejected a takeover bid of up to $654 million from fellow Australian miner Zinifex Ltd ZFX.AX as inadequate. (Reporting by Jonathan Standing)