corunna downs announcement, page-14

Good point watso.It would be much cheaper and easier for Atlas iron to just take over GDA, especially if Corunna downs surprises on the upside and holds 2b tonne of ore, which is worth another $40 million to GDA on top of royalties

NEWS TODAY....
"In what could be a win-win outcome for both companies, junior iron ore miner Atlas Iron Limited (ASX: AGO) could be set to utilise Fortescue Metals Group’s (ASX: FMG) railway line and infrastructure.

Atlas needs a railway to connect its iron ore mines in East Pilbara to Port Hedland, in conjunction with Brockman Mining (ASX: BCK). The company has been looking at building its own railway and has implemented a feasibility study with rail operator Aurizon Holdings (ASX: AZJ) – ex QR National.

According to the Australian Financial Review, Fortescue is keen to maximise the sale price for a 40% plus stake in its rail and port infrastructure. The company is reportedly targeting proceeds of between $3 to $4 billion from the sale to pay down debt. In return for the stake, the winner will receive an annuity, rather than run the infrastructure themselves, which will likely be based on freight carried.

By signing up Atlas as a customer for its rail and port assets, a potential 40 million tonnes of additional iron ore could be added to Fortescue’s existing rail, boosting the annuity and therefore the sale price higher. Atlas, in turn, could face costs of $3 billion to build its own railway and infrastructure, plus an additional $2 billion for a new export terminal at South West Creek. An option to use Fortescue’s rail line would be much cheaper.