TWO OF Western Australia’s iron ore juniors are set to merge in a quest for greater market weight and improved port export capacity.
Atlas Iron, which late last year absorbed the smaller Warwick Resources, has now proposed a A$143M ($130M) share deal to take over Aurox Resources. Aurox’s key project is the 230M tonne Balla Balla magnetite and titanium mine.
The merged company would have an immediate direct shipping ore resource of 187M tonnes, with expected output of 6M tonnes in 2010 and 9M tonnes in 2011, rising sharply to 26M tonnes in 2014.
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