The proposed merger of Australian iron ore miners Aurox Resources Ltd (Aurox) and Atlas Iron Ltd has been deemed "fair and reasonable" by an independent expert commissioned by Aurox.
"The independent expert commissioned by Aurox has concluded that the scheme is fair and reasonable and in the best interests of Aurox shareholders," the companies said in a joint press release.
A meeting of Aurox shareholders to vote on the merger will be held at on Friday, August 6.
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.