Atlas Iron expands in Pilbara for $1m

Atlas Iron will expand its footprint in the Pilbara after deciding to exercise its option to acquire iron ore rights in six Pilbara tenements from Haddington Resources for $1 million.

Under the deal, which was first unveiled earlier this year, Atlas will issue 485,437 shares priced at $2.06 each to acquire the iron rights to the tenements.

The tenements are in close proximity to Port Hedland and rail lines owned and operated by Fortescue Metals Group and BP Billiton.

Atlas said the tenements will form part of its Mt Webber direct shipping iron ore project.

Shares in Atlas climbed 7.5 cents to $1.495 at 11:05 AEST.