Sheffield Resources announces sale of Pilbara iron tenements

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Independent Australian iron ore company Atlas Iron has agreed to buy 3 exploration tenements from the Perth-based exploration and development company Sheffield Resources for A$150,000.

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Sheffield said the sale of the tenements – located near Atlas Iron’s Abydos and Mt Webber iron ore operations – was consistent with the company’s strategy of “unlocking value” from non-core assets while focusing on the its flagship Thunderbird HSM Project – one of the largest and highest grade mineral sands discoveries in the last 30 years. Once in full production, Thunderbird has the potential to supply approximately 8% and 4% of the world’s zircon and ilmenite, respectively.

“The sale consideration is A$150,000 payable in Atlas Iron shares based on a 15% discount to their 5-day volume-weighted average price,” reads the ASX announcement by Sheffield.

“The consideration shares will not be tradable by Sheffield for a period of up to 12 months, in accordance with Corporations Law requirements.”