On May 5, Australian iron ore miner Atlas Iron Limited (Atlas) announced that, pursuant to its option agreement with Australia-based integrated resource company Haddington Resources Limited (Haddington) issued on January 15 2008, it has given Haddington notice of its intention to exercise its option to acquire the iron ore rights to six Pilbara tenements from Haddington.
Accordingly, Atlas will issue Haddington with 485,437 Atlas shares, worth AU$1 million (US$747,000) at an issue price of AU$2.06 (US$1.54) per share no later than May 13, 2009.
These tenements, which form part of Atlas' Mt Webber DSO Project, are between 75 and 160 kilometers from Port Hedland, less than 60 kilometers from the railways of Australian miners Fortescue and BHP Billiton, and less than 60 kilometers from the Great Northern highway. Some of these tenements adjoin the company's Abydos project.
In a statement on the issue, Atlas said, "Mt Webber forms another important link in the company's objective of growing a substantial production base from the "Greater Abydos Project" area south of Port Hedland. The company has already commenced drilling at Mt Webber. Additional close-spaced mapping at Mt Webber has reinforced Atlas' opinion that the project will provide a major increase to the resource inventory in the coming year."