Atlas Iron, Aurox to announce material transactionThe West...

Atlas Iron, Aurox to announce material transaction

The West Australian March 8, 2010, 7:28 am

Pilbara iron ore producer Atlas Iron and iron ore hopeful Aurox have placed their shares in trading halts pending announcements about "transactions".

Atlas Iron shares leapt at the open before the trading halt, gaining nine cents, or 4.25 per cent, to $2.21.

Last month the two companies signed a deal to share port capacity at Port Hedlands proposed Utah Point shipping berths.

Aurox also revealed it was in advanced talks to sell up to 50 per cent of its Balla Balla magnetite project.

Aurox hopes to use the funds along with $1.3 billion in Chinese debt funding it hopes to raise through its partnership with Metallurgical Group Corporation to develop the project.

Aurox has all necessary approvals for Balla Balla to proceed.

The first stage of the project would produce six million tonnes a year of magnetite and 280,000 tonnes of titanium concentrate.

Aurox shares last traded for 27 cents.