Atlas Iron (AGO) is an emerging iron ore producer and explorer, and has been one of the market’s hot stocks in recent months. With a growing number of high quality iron ore projects and one of the largest landholdings in the lucrative Pilbara region, AGO is now one of the area’s largest iron ore producers.
The company’s significant projects include the Pardoo operation, the Ridley project and the Mt Webber Direct Shipping Ore (DSO) project, in the Pilbara region.
On 21 December, AGO made an $828 million takeover offer for junior iron ore explorer, Giralia Resources (GIR).
The implied price of $4.57 per represents a 53% premium to GIR’s closing price yesterday.
GIR shareholders can either accept 1.5 AGO shares per every GIR share, or 1.33 AGO shares and 50 cents per every GIR share.
GIR’s board accepted the offer and the company’s share price skyrocketed 39.8% today. AGO shares dropped 1.4% amid fears the offer price was too high.