Atlas Iron acquires WA iron ore rights
April 15, 2008 - 7:41PM
Atlas Iron Ltd has entered into an option agreement to acquire the iron ore rights over De Grey Mining Ltd's Mt Dove project in the Pilbara region of Western Australia.
The Mt Dove project is sandwiched between Atlas' Pardoo project, which is scheduled to go into production in October, and its Abydos project, where it has reported ongoing exploration success.
As partial consideration, Atlas will pay $350,000 to De Grey in Atlas shares upon execution of the formal agreement.
De Grey can also choose to be paid either $650,000 in cash or 325,000 Atlas shares, no later than 12 months from the date of the formal agreement.
De Grey also retains a one per cent gross sales royalty.
De Grey has encountered iron ore grades up to 62.5 per cent at Mr Dove.
Atlas managing director David Flanagan said the company planned to "get on the ground as quickly as possible".
Atlas also Tuesday increased its interest in Warrick Resources Ltd to 15.33 per cent after last week flagging its intention to hold a 19.9 per cent strategic stake in the company.
Atlas' Pilbara projects are close to port, rail and road infrastructure.
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