ASX Announcement 24 December 2014
Atlas to move to 100% ownership of Mt Webber
Atlas Iron Limited (ASX:AGO) is pleased to advise it has reached agreement with its joint venture partner, Altura
Mining Limited (ASX:AJM), to purchase Altura's joint venture interest in the Mt Webber mine.
The Mt Webber project spans mining lease M45/1209 (Atlas 70%, Altura 30%), and the northern adjoining tenement M45/1197 (Atlas 100%), with Altura's share representing approximately 16% of the combined project.
The consideration payable is equivalent to the outstanding principal and interest under the loan from Atlas to Altura and other amounts due to Atlas. As a result of this transaction, Atlas will own 100% of the mine, having funded
100% of the development costs. The final calculation of the amount owing will be determined once the completion date is known, but is indicatively A$22 million. Completion of the transaction is subject to Altura shareholder approval.
In addition, Atlas has agreed to pay Altura a sales royalty of 1% of the FOB sales price on Altura's share of tonnes produced from the above mining licence and other jointly owned peripheral tenements when the 62% Fe price averages greater than A$95 in the month of delivery.
Atlas Managing Director, Ken Brinsden said "Our decision to purchase Altura's joint venture interest reflects our confidence in Mt Webber as a high quality, low cost asset, where Atlas is just finalising its expansion to 6MT pa. Atlas' significant infrastructure position and presence in iron ore markets means that it can bring the tonnes to market cheaper than Altura, who was paying Atlas a fee for those services. This makes Atlas the logical owner of the asset and we look forward to having the flexibility that full project ownership brings."
Mr Brinsden also acknowledged the contribution of Altura to the Mt Webber project "We have been working with
the Altura team for many years and they have been a reliable and supportive joint venture partner, we look forward to our continuing engagement on matters relating to Mt Webber."
Investor Enquiries:
Atlas Iron +61 8 6228 8000
Ken Brinsden, Managing Director
Mark Hancock, Chief Commercial Officer
Media Enquiries:
Read Corporate +61 8 9388 1474
Paul Armstrong +61 421 619 084
Atlas Iron Limited
ABN 63 110 396 168
Raine Square, Level 18
300 Murray Street Perth WA 6000
PO Box 7071
Cloisters Square Perth WA 6850
P: +61 8 6228 8000
F: +61 8 6228 8999
E: [email protected]
W: www.atlasiron.com.au