News: Atlas purchases rare earth prospect

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Atlas Iron Limited (ASX:AGO)will purchase Gondwana Resources Limited’s (ASX:GDA) interest in the Trigg Hill rare earth prospect in the Pilbara region of Western Australia for $1.3 million.



Atlas has also entered into an option agreement for Gondwana’a interests in the Corunna Downs tenements in East Pilbara.



The option agreement expires in October next year and is for a total consideration of $2.1 million in cash, $1.4 million of which would be payable upon transfer of the tenements to Atlas.



The iron ore miner will pay a royalty of $1.13 to Gondwana per tonne of all iron ore sold from Corunna Downs, as well as 1.5 per cent of the gross proceeds of other mineral sales from the prospect.



Atlas booked a net loss of $114.6 million in the 2012 financial year.