Australia-based iron ore miner Atlas Iron Limited has announced that it has agreed to pay Gondwana Resources Limited A$2.1 million in cash to acquire a 90 percent interest in the Corunna Downs Direct Shipping Ore (DSO) Project in North Pilbara, Western Australia.
The agreement offers a staged 12-month exploration option for 100 percent of Gondwana's interest in the project.
According to agreement, Atlas will make a staged payment; A$350,000 on signing, A$350,000 six months after signing and A$1.4 million on exercise of the option and transfer of the assets to Atlas. Gondwana will have a royalty of A$1.13 per metric ton for all the mined iron ore, while Atlas will have the right to buy back the Gondwana royalty for A$0.20 per ore reserve ton.