JOHANNESBURG (miningweekly.com) – Emerging iron-ore explorer Warwick Resources and ASX-listed Atlas Iron on Tuesday reported that the Federal Court had allowed the proposed merger between the two companies to proceed.

Warwick would now convene a meeting of its shareholders and optionholders, to consider a schemes of arrangement for the proposed merger with Atlas.

Under the terms of the schemes, Atlas was offering Warwick shareholders one Atlas share for every three Warwick shares held on the record date for the share scheme, and Warwick optionholders a number of Atlas shares which was dependent on the tranche of Warwick options held by each optionholders.

The directors of Warwick have unanimously recommended that security holders vote in favour of the schemes, in the absence of a superior offer. The directors of Warwick have also advised that they each intend to vote the Warwick shares and options that they control in favour of the schemes.

The shareholders and optionholders meeting was now scheduled to take place on November 30.

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