Aurox Resources Ltd (ASX:AXO) has announced that a proposed merger with Atlas Iron Ltd (ASX:AGO) has been deemed fair and reasonable by an independent expert.

If the scheme is implemented, Atlas will issue to Aurox shareholders one fully-paid ordinary Atlas share for every three Aurox shares held on the record date.

The implied value of the proposal is based on the market price of Altas shares, represented 69 cents per Aurox Share as at 1 July 2010.

Aurox managing Director Charles Schaus says that the company will significantly benefit from participating in Altas’ growth.

Managing Director at Altas David Flanagan is equally as positive about the proposed merger, encouraging Auxox shareholders to vote in favour of it.

Aurox Resources reported a loss of $30.6 million for the 2009 financial year.