Australian iron ore miner
Atlas Iron Limited has announced that it will sell its Balla Balla magnetite project located on the Pilbara coast in Western
Australia to
Australia-based exploration company Forge Resources Limited for a consideration of A$40 million to be paid in two stages.
Under the agreement, Forge will pay A$17.5 million to
Atlas by the end of February 2012, subject to any required Forge shareholder approvals, while 12 months after the initial payment Forge will pay a further A$22.5 million. Forge will also make royalty payments based on the tons sold.