Atlas-Aurox merger becomes legally effective

Friday, 13 August 2010 10:12:38 (GMT+3)   |  
       

Australian iron ore miners Aurox Resources Ltd (Aurox) and Atlas Iron Ltd (Atlas) have announced that orders from the Australian Federal Court approving the scheme of arrangement between Aurox and its shareholders for the proposed merger between the two miners were on August 13 lodged with the Australian Securities and Investments Commission.

"The scheme is now legally effective. Aurox's shares will be suspended from trading on ASX [Australian Securities Exchange] after close of trading today (August 13)," a joint press release said.  Trading of new Atlas Shares on ASX on a deferred settlement basis will take place from August 16 until August 20.

As SteelOrbis previously reported, the miners agreed to merge in March in a deal worth AU$149 million. According to the agreement, Aurox shareholders are to receive one Atlas share for every three Aurox shares.
 
As a result of the merger, Atlas will benefit from an additional 10 to 12 million mt per year in long-term Port Hedland port capacity which has been secured by Aurox, making a total of 33 million mt per year. Atlas will also acquire 100 percent ownership of the fully permitted 456 million mt Balla Balla magnetite project.
 
The merged company will have 187 million mt of direct shipping ore (DSO) resources, exploration targets of 430 to 750 million mt at 57-60 percent Fe, two Pilbara magnetite projects and a 15,000 km2 Pilbara landholding and a direct shipping ore (DSO) production target of 26 million mt per year by 2014.


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