AAP reported that Atlas Iron has bought Gondwana Resources' 90% stake in the Corunna Downs project in Western Australia for AUD 2.1 million in cash.

The Corunna Downs exploration prospect is located approximately halfway between Atlas Iron's Mt Webber and McPhee Creek prospects in the North Pilbara region.

Gondwana said it did not possess the financial resources to develop Corunna Downs alone, and its iron ore potential could only realistically be developed by a miner with established iron ore deposits and operations in the region, such as Atlas Iron.

Gondwana will retain a royalty of AUD 1.13 per tonne for all iron ore mined at Corunna Downs.

(Sourced from AAP)