Atlas acquires options at Mt Dove

Atlas Iron has entered into an option agreement to acquire the iron ore rights over...

  Atlas Iron has entered into an option agreement to acquire the iron ore rights over the Mt Dove Project in the Pilbara, Western Australia from De Grey Mining.Under the terms of the agreement, Atlas will pay $350,000 to De Grey in Atlas shares valued on the VWAP for the five days prior to April 10 and payable upon execution of the formal agreement. Atlas will also pay $650,000 in cash or 325,000 Atlas shares, at De Grey’s election, which will occur no later than 12 months from the date of the formal agreement. The Mt Dove tenement includes only E47/891 and De Grey will retain a 1 percent gross sales royalty. The tenement is located 70km from Port Hedland, less than 15km from the BHP Billiton railway and less than 15km from the Great Northern highway. Reconnaissance rock chip sampling at Mt Dove by De Grey Mining returned values of up to 62.5% Fe.“Like our other tenement and mineral rights acquisitions recently, this tenement is close to good infrastructure and is prospective for iron ore,” Atlas Managing Director, David Flanagan said. “Atlas continues to be an active explorer in this area and we intend to get on the ground as quickly as possible, drill some holes and build on our recent success at our nearby Abydos tenements,” he said.