Another One Bites the Dust: Mineral Resources Leaves Atlas Battle

The fight for Atlas Iron has been narrowed down to Fortescue Metals Group and Redstone after Mineral Resources’ withdrawal from what has now become a bidding war.

The three-company battle for Atlas Iron (ASX:AGO) just narrowed down to two, with Mineral Resources (ASX:MIN) withdrawing from the bidding war.

Mineral Resources originally agreed to merge with Atlas in April, and the deal was supposed to be completed by August. However, in recent weeks, Redstone, a subsidiary of Gina Rinehart’s Hancock Prospecting, has snatched up a 19.96-percent share in the company.

Within the same time period, Fortescue Metals Group (ASX:FMG) has picked up a 19.9-percent stake in Atlas, turning the situation into a three-way tug of war.

The most recent shake up to the situation came on Monday (June 18), when Redstone put down a AU$390-million cash takeover bid for Atlas at 4.2 cents a share, forcing Mineral Resources and Fortescue to weigh their options.

In an announcement released Tuesday (June 19), Mineral Resources stated that Atlas had given it until Thursday (June 21) to make a counteroffer against Redstone. In a statement released Wednesday (June 20), Mineral Resources announced that it will not be making a counterproposal.

Aside from an initial statement made on Monday following Redstone’s bid, when it said it would be assessing its options, Fortescue has not made any announcements about its plans regarding Atlas.

The fight for Atlas reportedly stems from the company’s involvement in the joint venture North West Infrastructure, which has plans to develop two new berths at Port Hedland in Western Australia.

The port, which services much of the Pilbara region’s iron ore exports, currently has a single berth with a capacity of 13 million tonnes; the expansion would push that number up to 50 million tonnes.

Atlas recently met some resistance from the Western Australian government regarding the expansion plans, specifically from transport minister Rita Saffioti, who told the company that the berths are reserved for junior miners. Saffioti also said the decision will fall to the Pilbara Ports Authority, leaving some wondering if the project will still come to fruition.

As of 2:20 p.m. EST on Wednesday, Atlas’ share price was at AU$0.045, up 2.27 percent. Since the beginning of the year it has risen 12.5 percent.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Rio Tinto reaches agreement with Turquoise Hill Resources on financing plan for Oyu Tolgoi

Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the “Funding Plan”) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion 1 , building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.

Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will:

Keep reading... Show less

Rio Tinto Exploration and Calibre Mining Initiate 2021 Exploration Program Including 5,500 Metre Drilling Campaign Prioritizing Prospective Near-Surface Copper and Copper-Gold Mineralization

Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (the “Company” or “Calibre”) is pleased to provide an update on the Borosi exploration project held under an earn-in option agreement between Rio Tinto Exploration (LSE:RIO) (“RTX”) (“Rio Tinto”) and Calibre. Calibre controls a 100% interest in the Borosi concessions located in the prolific Mining Triangle region of northeastern Nicaragua. RTX has the right to earn a 75% interest by spending US$45 million over eleven years in the project ( see Calibre news release dated February 24, 2020 ). The Borosi exploration program is being directed by RTX through a partnership agreement with Calibre as project operator.


Keep reading... Show less

FDA Approves Trodelvy®, the First Treatment for Metastatic Triple-Negative Breast Cancer Shown to Improve Progression-Free Survival and Overall Survival

Trodelvy Significantly Reduced the Risk of Death by 49% Compared with Single-Agent Chemotherapy in the Phase 3 ASCENT Study –

– Trodelvy is Under Regulatory Review in the EU and in the United Kingdom, Canada, Switzerland and Australia as Part of Project Orbis

Keep reading... Show less

Rio Tinto details $47 billion 2020 economic contribution, including $8.4 billion of taxes and royalties

Rio Tinto today released its 2020 Taxes paid: Our economic contribution report , which shows the company made a total direct economic contribution of $47 billion in the countries and communities where it operates, including $8.4 billion of taxes and royalties.

Despite the widespread challenges of COVID-19 in 2020, the contribution was up from the previous year, when Rio Tinto made a total direct economic contribution of $45.1 billion in the countries and communities where it operates, including $7.6 billion of taxes and royalties.

Keep reading... Show less

Top News

Related News