Atlas Iron buys $33M Haoma tenements

Company News

Atlas Iron Limited (ASX:AGO) has inked a deal to acquire the remaining rights on the Daltons tenements that it does not already own from Haoma Mining NL (ASX:HAO).

Atlas says it will pay $33 million for the remaining 25 per cent of the iron ore rights to the Daltons Joint Venture tenements, part of the Mt Webber project in Western Australia.

The consideration is made up of $10 million in cash and $23 million in Atlas shares.

The Mt Webber project is expected to be brought into operation as part of Atlas’ plan to boost production to 12 million tonnes per annum by June next year.

Shares in Haoma Mining had jumped more than 37 per cent this morning. Shares in Atlas were trading 1.4 per cent higher at $2.92.

In the first half of the 2012 financial year Atlas Iron’s net profit fell 80 per cent to $6 million.