08/03/2010 - 08:06

Consortium to buy into Atlas project

08/03/2010 - 08:06

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Indian miner NMDC, Saudi Arabia's ABS Consulting and Sydney-based Boulder Steel are reportedly planning to submit a $US230 million ($A252 million) proposal to buy a large stake in one of Atlas Iron's Pilbara iron ore mines.

Indian miner NMDC, Saudi Arabia's ABS Consulting and Sydney-based Boulder Steel are reportedly planning to submit a $US230 million ($A252 million) proposal to buy a large stake in one of Atlas Iron's Pilbara iron ore mines.

Shares in Atlas Iron were this morning placed in a trading halt, pending news of a potential material transaction.

The Economic Times reported that a person familiar with the transaction as saying that NMDC, ABS Consulting and Boulder Steel to acquire a 70 per cent stake in an Atlas mine, either Pardoo or Ridley.

It's reported that NMDC will buy a 10 per cent stake in the mine for $US70 million, and will get a further 5 per cent for free for providing technical expertise.

ASX-listed Boulder Steel will reportedly get 5 per cent while ABS will acquire a 55 per cent.

The consortium has submitted an indicative bid, however The Economic Times reported that it understood that a Chinese firm could be a potential rival.

Atlas is expected to stay in a trading halt until Wednesday or when the announcement is released to market.

Shares in Atlas last traded at $2.21, up nine cents on Friday's closing price.

Meantime, Aurox Resources has also placed its shares in a trading halt, pending a price sensitive transaction.

The company, which holds projects in the Pilbara, expects to make an announcement before the start of trade on Wednesday.

Shares in Aurox last traded at 27c, unchanged from Friday's close.

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