THE BOURSE WHISPERER: Atlas Iron has announced that it has entered into a binding Heads of Agreement to acquire the remaining 25 per cent of the iron ore rights on the relevant Daltons joint venture tenements it does not already own from Haoma Mining.
“The acquisition of this remaining interest in the Daltons tenements is another important step along the path to developing Mt Webber,” Atlas managing director Ken Brinsden said.
“Mt Webber is a crucial piece of the Atlas growth strategy, which will involve the construction of several new mines to increase our total production rate to 12 mega tonnes per annum by June 2013 and which will ultimately see the company use rail transport for the first time as it targets increasing annual production to 46 million tonnes by 2017.”
The other exploration tenements remain subject to the existing exploration joint venture between Atlas and Haoma.
Haoma holds the rights to all non iron ore minerals across all the tenement groups.
Northern Pilbara project locations / project reserves 30 June 2011. Source: Company announcement
The Mt Webber project will be brought into operation as part of Atlas’ plan to increase its total production rate to 12 million tonnes a year by June 2013.
Mt Webber will also play a key role in Atlas’ plan to begin transporting iron ore by rail, a move which will see the company targeting production of 46 million tonnes a year by 2017.
Disclaimer: The Roadhouse holds shares in Atlas Iron