In a board change Atlas Iron has made Sanjiv Manchanda as chief executive officer, who has replaced Cliff Lawrenson, after an acquisition of billionaire Gina Rinehart’s Hancock Prospecting. Previously served as head of project development for Hancock Prospecting, Mr. Manchanda was named recently. As its chairman, Atlas Iron also appointed Spiro Pappas. In June 2018, from Hancock, Atlas has endorsed a $390 million buyout.
Post finalizing the process of acquiring the junior miner, the changes to the board come to Hancock Prospecting. After a prolonged battle for control, last week secured more than 90 per cent of Atlas shares. For their scrip as per the latest bid remaining Atlas shareholders will receive 4.6¢-a-share.
As the entity will be merged in to Hancock, Atlas iron will then be removed from ASX. Garry Korte, Hancock chief executive, last week said how best to integrate the Atlas business into the Hancock Group’s broader iron ore interests, that’s where the company would now turn its attention to. Its plans for Atlas, has not yet been revealed by the company which trucks its ore to Port Hedland for export through the Utah Point multi-user berth and operates the Mt Webber low-grade iron ore mine in the Pilbara.
The acquisition provides Hancock with its operating iron ore and its first fully-owned mine. In the 47 million ton-a-year Hope Downs project, Hancock holds a 70 per cent interest in the Roy Hill project an integrated railway, iron ore mine, and port project with nameplate capacity of 55mtpa and a 50 per cent interest, as part of a joint venture with Rio Tinto. There is a separate berth for Roy Hill at Port Hedland.
Hancock, including its Mulga Downs project, also has various iron ore exploration prospects in the Pilbara. The wealth of Gina Rinehart is super charged by getting Roy Hill with US $10 billion mega iron ore operation in Pilbara up and running. She is also making a from RIO Tinto iron ore royalties and her half share in the Hope downs Joint venture, that has kept her on the very top of the rich list as well. Unless there is a crash in iron ore prices this position is likely to be unmoved by anyone in the coming future.
With plans to roll out more premium stakes to customers in China through company S Kidman, the combined fortune of the Rinehart’s family trust comes out to be around $1.7 billion. Atlas Iron was trading at a market price of $0.045 as at October 15, 2018 which is near its 52-week high under the metals and mining sector. The stock has also witnessed a performance change of 164.71% over the past 12 months period.
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