A proposed merger between Aurox and Atlas Iron has seen shares skyrocket in the miners.
A merger between the two will see Atlas acquire additional access to port facilities currently held by Aurox.
The current port allocations of Aurox are 6 million tonnes per year, which will increase to 10 million tonnes annually from 2015, and then up to 12 million tonnes.
Atlas is forecast to export 3 million tonnes of iron ore to China in 2010, growing to 12 million tonnes of ore by 2012.
The announcement of the deal saw shares in Aurox skyrocket by 144% while Atlas shares fell 2.3%.
“This merger creates one company with an outstanding rapidly growing production profile supported by port capacity in one of the world’s greatest bulk export ports,” Atlas Iron managing director Dave Flanagan stated.
Atlas is offering a $143 million scrip to scrip offer which will see Aurox’s shares valued at 74 cents per share, still above today’s share price of 63 cents per share.