Translation:This bar is dark and smells like sheep.
I believe in English there is a small difference that cannot be expressed in Dutch. You might say "my hands smell of sheep" after you touched a sheep, whereas you would say "this soap smells like sheep" even though the soap never touched a sheep. In Dutch both of these would be "ruikt naar schapen." However looking on grammar forums on the internet suggest that this difference is minute, and colloquially both "of" and "like" are commonly used. Therefore your translation should probably be accepted too.