8.3 million off market atlas sells, page-4

TFG,

Atlas Iron ended up with its shares in CAP when they took over Giralia Resources. They paid $828 million for Giralia. One of the main synergies was the close proximity of Atlas and Giralia projects, I doubt Giralia's shareholding in CAP was ever a consideration.

At the time of the take over (December 2010), Giralia Resources Chairman Graham Riley was quoted as saying: "The Giralia board believes the effective merger of the two companies… is forceful and compelling, unlocking significant latent value for both companies, and creating a combined entity with the critical mass and required infrastructure to be a significant power in the Pilbara iron ore sector".

Atlas is all about the Pilbara and hematite.

Whilst I hold Atlas in my SMSF, I am happy to see them offload their shareholding in CAP, as I do not beleive that they would have bought any benefit to Hawsons development.

The share price in Atlas has dropped more than 50% over the last 6 months. Current market cap is $1.87 Billion, no debt and $395 million in cash. The Atlas board has made it clear where their priorities and focus lies and it was probably an easy decision to sell their stake in CAP for around $3.5 million, help boost their cash position by 1%.

I wonder if CAP management helped facilitate the off market sale?

Great to see the volume in CAP today, perhaps we will see another change in substantial holding notice over the next few weeks. I wonder what Mr. Yue is thinking?

To those who had big kahunas, belief in CAPs projects, and CAPs management, congtraulations. Those shares bought when we were sub 20c back in Decemnber last year look pretty good now, not a bad ROI in 6 months!

Now where are the details on our new J/V partner?