Atlas Iron buys three iron ore tenements in the Pilbara

Atlas Iron has purchased three iron ore tenements near its Abydos and Mt Webber iron ore operations.

The deposits were owned by Sheffield Resources, and are worth $150,000, but Atlas will pay in shares rather than cash.

Sheffield said the sale of the iron ore tenements is consistent with its strategy of  unlocking value from non-core assets while focusing on the company’s flagship Thunderbird heavy mineral sands project west of Derby in the Kimberley.

Atlas shares are trading at around 3c, after suffering a major fall when the company resumed trading in late July for the first time in three months.

Earlier in July, Atlas fell short of its $180 million capital raising target, raising just $86 million in funding.

The Pilbara miner launched the capital raising initiative in June for just 5 cents per share.

However the price of iron ore crashed during the fund raising efforts to record lows of $US44.60 per tonne.

Atlas was a high-profile victim of the iron ore collapse earlier this year after it closed its Pilbara mines and cut 600 jobs.

Since then, Atlas contractors have stepped in to help the company stay afloat, ushering in new profit-sharing agreements and cost-cutting measures which has seen the operations re-open.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.