PERTH (miningweekly.com) – Embattled iron-ore miner Atlas Iron has acquired three exploration tenements, located near its Abydos and Mt Webber operations, in the Pilbara, from fellow-listed Sheffield Resources.
Atlas would pay A$150 000 for the tenements, payable in shares based on a 15% discount to the company’s five-day volume-weighted average price.
Sheffield would not be able to trade the shares for up to 12 months.
Sheffield told shareholders on Thursday that the sale of the iron tenements was consistent with the company’s strategy of unlocking value from its noncore assets, while focusing on the flagship Thunderbird heavy mineral sands project.
Atlas in April suspended operations at its three mines in the Pilbara, owing to the volatile iron-ore market, but in June restarted production. The miner was targeting output of 14-million tonnes to 15-million tonnes a year from the three operations.