The Chairman of Atlas Iron (ASX:AGO) has given more information on the planned proposal to combine with Mineral Resources (ASX:MIN).
The company is under takeover in a $280 million all scrip deal with Mineral Resources (ASX:MIN), a Perth-based company with a diversified portfolio including significant lithium resources.
If the Scheme is approved Atlas shareholders will receive 1 Mineral Resources share for every 571 Atlas shares they hold at the record date, with Mineral Resources proposing to acquire the entire issued capital of Atlas.
The Atlas Directors have announced their unanimous support for the transaction.
MinRes is a diversified ASX-listed mining services and processing company with a market capitalisation of more than $3 billion.
It has extensive operations in the Pilbara region including iron ore and lithium mining and processing.
Atlas Iron (ASX:AGO) is trading down 3.3 per cent to 2.9c and Mineral Resources (ASX:MIN) is down 3.61% to $17.35.