Warwick approves Atlas merger

Warwick Resources shareholders have unanimously approved the merger with Atlas.

Warwick Resources shareholders have approved the total merger with fellow iron ore miner Atlas Iron. Voting unanimously for the merger, Warwick shareholders will see the company begin the amalgamation with Atlas on 14 December, following approval of the schemes of arrangement on 7 December. The merger is expected to create an iron ore miner with a market capitalisation of approximately $736 million. As Warwick rolls into Atlas, the combined entity has forecast a production target of 26 million tonnes per year of magnetite iron ore by 2014, with a total of 154 million tonnes of direct shipping ore mineral resources. While the Atlas board will remain unchanged after the merger, Warwick shareholders will represent 9% of the merged miner. The merger will give Atlas significant exploration ground in the Newman area of Western Australia, just south of its existing Pardoo and Wodgina projects. Speaking to MINING DAILY, Atlas Iron’s geology manager Andrew Patterson outlined the company’s current focus on consolidation with Warwick. Atlas is “working on our planned merger with Warwick, and will start looking into the Newman area” next year, Patterson said. This merger follows the recent acquisition of Jigalong Iron Ore by Warwick in August. Warwick also has exploration tenements in gold, copper, chromite and molybdenum.

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