PERTH (miningweekly.com) – Western Australian iron-ore producer Atlas Iron has ceased trading in its shares on the ASX on Tuesday, as it was currently in discussions regarding a “potential material transaction.”

Fellow listed Aurox Resources also placed its share trading on a temporary halt, pending a price sensitive transaction.

In February this year, Atlas Iron entered into a cooperation agreement with Aurox Resources, regarding Aurox’s port capacity allocation at the Utah Point port facility, currently being constructed by the Port Hedland Port Authority, in Western Australia.

In exchange for a A$13,8-million loan, Atlas would be able to use Aurox’s surplus berth, shiploading and stockpiling capacity at the Utah Port point facility, that will become available in March 2012.

Both companies were expected to resume trading on March 10.

Meanwhile, Atlas Iron has reported an operating loss of A$23,1-million for the interim period ending December, compared with a loss of A$33,9-million in the previous corresponding period.

Sales for the period increased to A$41,7-million, compared with the A$3,5-million recorded in the half year to December 2008. However, Atlas Iron noted that the operating performance was impacted on by the “dramatic strengthening” of the Australian dollar, weak iron-ore prices in the early part of the period, and the changeover of the Pardoo mining contractor in late 2009.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.