WPG approves $346M sale to OneSteel

Company News

WPG Resources Limited (ASX:WPG) shareholders have agreed to sell $346 million of iron ore assets to OneSteel Limited (ASX:OST).

Shareholders yesterday followed the board’s advice and endorsed the deal to offload the company’s South Australian iron ore assets.

Chairman, Bob Duffin, encouraged the sale, claiming the financial outcome is comparable to what the company would expect if it developed the iron ore assets itself. 

Mr Duffin also said that extreme volatility in market conditions and the likelihood that iron ore prices are going to fall are powerful arguments for accepting the sale proposal.

In the 2011 financial year WPG Resources reported a net loss of $2.3 million.