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| Australian Atlas Iron, Warwick Resources Agree To Merge |
| = With one Atlas share to be issued for three Warwick shares = |
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Australian Atlas Iron Limited ("Atlas") and Warwick Resources Limited ("Warwick") have agreed to merge with a view to consolidating iron ore projects and/or assets held by each company in the Pilbara region, Western Australia. According to the September 7 announcements of both companies, merger will take place by Atlas issuing one Atlas share to Warwick shareholders for every three Warwick shares (implied value of $0.55 per Warwick share based on Atlas share price of $1.65). The merger offer represents a 48% premium for Warwick shareholders based on the price of Warwick shares over the past 30 days. Proposed merger has been fully supported by the Boards of both companies and in the absence of a superior proposal, Warwick's Board recommends Warwick shareholders and option-holders to vote in favor of the merger. Combined company would have 154 million tonnes (Mt) of DSO (Direct Shipping Ore) resources at 56.5% Fe, plus exploration targets of 165 to 338 Mt at 56% to 60% Fe, and a Pilbara landholding of more than 15,000 square kilometers. David Flanagan, Atlas Managing Director said; "This transaction with Warwick brings with it a very large South East Pilbara iron ore tenement portfolio with exceptional resource potential. Developed in a project pipeline with our current North Pilbara Projects, we expect to be able to gain real operating synergies from this suite of projects and substantially increase production rates." |
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| last modified : Mon 14 Sep, 2009 [10:33] |
