Atlas Iron share in Giralia exceeds 90 percent milestone

Friday, 25 February 2011

Australian iron ore miner Atlas Iron Limited has announced that it holds 91.22 percent of the voting rights in fellow Australian iron ore mining company Giralia as of February 25.

As SteelOrbis previously reported, according to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$831 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent. The company then changed its offer to unconditional.

The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5-3 billion.

"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in a previous statement.

As SteelOrbis also previously reported, Atlas had agreed to buy Perth-based metals developer Aurox Resources on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.

Tags: iron ore , raw mat , Australia , Oceania , investments , M&A , mining , Atlas
(sourced:steelorbis)

ArcelorMittal and Nunavut now own 90 percent of Baffinland, extend offer

Monday, 07 February 2011 16:21:35 (GMT+2)
Luxembourg-based steelmaking goliath ArcelorMittal and Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings LP, now own 90 percent of Canadian miner Baffinland Iron Mines Corporation (Baffinland) through their C$590 million ($593 million) joint offer, after acquiring 89,710,019 more common shares. The joint stake was 65 percent before this recent transaction. The offer has also been extended until the end of February 17.
The offer seeks all shares of the company for C$1.50 (US$1.51) in cash per common share. Under the joint offer, ArcelorMittal and Nunavut Iron would own 70 percent and 30 percent of Baffinland respectively.
The companies decided to cooperate on January 14, following various rival bids to acquire Baffinland.
C$4 billion project
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion (US$4.02 billion) project, which is expected to produce 18 million mt per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities, also valid for the joint offer.
Tags: iron ore , raw mat , USA , Luxembourg , Canada , Europe , North America , mining , M&A , ArcelorMittal(sourced:steelorbis)