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Hancock offer to acquire shares-in Atlas Iron

Mining News - Published on Tue, 19 Jun 2018

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Redstone Corporation Pty Ltd, a wholly owned subsidiary of Hancock Prospecting Pty Ltd, announced an all cash offer to acquire all of the ordinary shares in Atlas iron Limited in which Redstone does not already have a relevant interest at a price of AUD 0.042 per share. The Offer represents a superior value proposal for Atlas shareholders relatrve to the previously announced proposal from Mineral Resources Limited. Specifically, the Redstone offer represents a 41% premium to the implied value of that MRL Proposal as at ciose of trading on 15 June 201S"

As the Offer is all cash, it is not subject to variations in the price of any other listed securities and therefore provides Atlas shareholders with certainty regarding the value of the consideration which they are being offered.

The offer its uncondition other than for the usual "prescribed occurrencesv, as detailed in the Bidder's Statement reieased today. As-such, Atlas shareholders should have a high degree of certamty that they wilI receive the Offer considerati on for their Atlas-shares, should they choose to accept the Offer.

Importantly, the offer is not subject to any minimum acceptance condition.

The directors of Redstone consider that the all cash offer, with its premium pricing and low conditio nality, represents a signif cantly superior proposition to the MRL Proposal and that the Offer should therefore be viewed as a compelling opportunity for Atlas shareholders.

Tad Watroba, Executive Direct or of Hancock, Said that the Atlas' assets have long term synergies with other assets in Hancock's portfolio.

Mr Watroba said that "We see lang term synergies between the A tics assets and the other iron ore interests within the Hancock Group. There is patential to unlock value through the future development of Ados resources as part of our wider system of operations, if we obtain control of Adlas, we intend to conduct a strategic review tobetter understand the most appropriated meand means to develop and integrate Atlas into the existing operations of the Hancock Group. The Hancock Group iron ore interests produce iron ore products that are priced off the 62% index. Some of the Adlas deposits contain elements the thave complementary characteristics providing opbanality and opportunity to improve the non iron elements of ore quasty further. The remainder of the Adlas resources could serve to extend the life of exisbng Hancock iron ore interests.

The-Hancock- Group
Hancock privately held Australian company that has a long and important association with the Pilbara region of West Australia and with the iron ore sector.

The Hancock Group holds a 50% interest in the 5 mtpa Hope Downs Project (in a joint venture wlth Rio Tinto) and a 70% interest in the Roy Hill Project, a substantial integrated iron ore mine, ralhvay and port project, which recently ramped up its production and shipments of iron ore to a rate of 55 million tonnes per annum. Hancock also haa various iron ore expioration prospects in the Pilbara, including its Mulga Downs project.

Source :

Posted By : Rabi Wangkhem on Tue, 19 Jun 2018
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