Photo by: Bloomberg
PERTH (miningweekly.com) – Iron-ore miner Atlas Iron on Friday announced a one-off impairment charge of around A$25-million related to its divestment of its interest in fellow-listed Shaw River Manganese.
Earlier this month, Atlas agreed to sell 9.69% of Shaw River’s issued capital to Bryve Resources at a price of A$0.0035 a share. Subject to Shaw River shareholder approval, Atlas would also grant Bryve a six-month option to acquire its remaining 43.76% shareholding in the company, at an exercise price of A$0.0035 a share.
Atlas said on Friday that the divestment of its interest in Shaw River was part of the company’s ongoing strategy to reduce expenditure.
Along with the divestment of various tenements and an agreement to sub-lease surplus office space, the cost-saving initiatives were expected to generate some A$10-million a year in ongoing savings.
“These measures are consistent with our drive to identify savings and ensure that our efforts are directed at those areas which will maximise shareholder returns,” said Atlas MD Ken Brinsden.
The measures, along with Atlas’ decision to adopt a market-to-market valuation of its investment in ASX-listed Centaurus Metals, would result in a one-off impairment and restructuring charge of about A$25-million in the company’s June financial statements.