McAleese Limited has entered revised agreements with Atlas Iron for on-going haulage services from the Abydos and Wodgina mines and has also made a $14 million commitment to Atlas’ latest share issue.
The Revised Haulage Agreements reportedly provide Atlas with improved cost competitiveness through a lower base haulage rate and give McAleese Group upside profit share linked to the Australian dollar iron ore price.
Other key contractors to Atlas have entered into similar agreements and McAleese Group continues to hold discussions with Atlas and its other key contractors about the potential recommencement of mining operations at the Mt Webber mine.
According to Atlas, McAleese will join transport, logistics and port operator Qube as well as civil construction and mining company MACA in the investment.
Participation by McAleese in the share issue is conditional on satisfaction of certain contractual obligations owed by Atlas to the Company, lodgement of the Atlas Prospectus with ASIC, Atlas Shareholder approval and confirmation that ASX intends to lift the suspension of trading in Atlas shares.
McAleese Group confirmed that FY2015 Trading EBITDA is still expected to be approximately $70 million.
