On July 27, Australian miner Atlas Iron Limited (Atlas) announced that it has formed a strategic alliance with Brazilian iron ore explorer and developer Centaurus Metals Limited (Centaurus). Accordingly, Atlas will acquire a 19.9 percent equity stake in Centaurus for $18.7 million.
Atlas will subscribe for 110 million Centaurus shares at a price of 8.8 cents per share, and it will also subscribe for a further 102 million Centaurus shares on the same terms and conditions above, subject to Centaurus shareholder approval.
According to a company statement, Atlas has agreed to provide technical support and product marketing to help Centaurus' growth. Atlas will be able to nominate one member to the Centaurus board.
"Having Atlas as a major shareholder positions Centaurus perfectly for its transition to an iron ore producer, from both our export and domestic projects in Brazil, and with its support we hope to replicate the sort of growth and success that Atlas has been able to achieve," Centaurus managing director Darren Gordon said.