Australia’s Atlas Iron to acquire Aurox Resources for A$149 million
10 Mar 2010
Australia's junior iron ore miner, Atlas Iron has today agreed to buy Aurox Resources Ltd. in a share deal that values Aurox at A$149 million ($136 million) to increase its ore resources and secure additional port capacity.
Perth-based Atlas Iron is offering one of its shares for every three of Aurox, which values Aurox stock at A0.77 cents, a 172-per cent premium to its closing price yesterday in a deal worth about A$149 million.
Atlas Iron is the 100-per cent owner and operator of the Pardoo, Wodgina and Abydos mines in the Pilbara region of Western Australia.
Atlas's projects include Pardoo Project, Ridley Magnetite Project, Abydos Project, Wodgina Project, Mt Webber Project and Midwest Project.
An international consortium that includes India's biggest iron-ore producer, National Mineral Development Corporation (NMDC), made a $230-million bid this week for a 70-per cent stake in a mine owned by Atlas Iron. (See: NMDC in overseas consortium for majority stake in Australia's Atlas Iron mine)
According to unconfirmed reports the consortium is looking for a stake in Atlas' $3-billion Ridley project, which has estimated reserves of about 2 billion tonnes of iron ore.