JUMP FOR ATLAS AS GINA SHOWS HER WILL OF IRON
ATLAS Iron shares jumped almost five per cent yesterday after the Pilbara miner announced billionaire Gina Rinehart had bought a large stake in the company.
The move by Mrs Rinehart comes just days after fellow mining magnate Andrew “Twiggy” Forrest purchased a similar size stake in the business. Early yesterday morning Atlas confirmed Redstone Corporation, a wholly-owned subsidiary of Mrs Rinehart’s Hancock Prospecting, had bought a 19.96 per cent stake in Atlas.
Its shares gained 4.8 per cent to 44¢, before they were placed into a trading halt which is expected to be lifted tomorrow. The Redstone deal followed an announcement last week by Fortescue Metals, which is chaired by Mr Forrest, who bought a 19.9 per cent in Atlas. Atlas Iron has been a takeover target by Australian-based mining services and processing company Mineral Resources, which lobbed a $280 million bid to buy the company back in April. The Atlas board supports the offer, which Mineral Resources says will allow both companies to maximise the value of their low-grade iron ore deposits in a tough export market.
Atlas operates two mines in the Pilbara.