Fortescue Metals Group has agreed to acquire 15% of the ordinary shares in Atlas Iron Ltd. at a price of A$0.04 per share. In addition, Fortescue has an economic interest through a cash settled swap relating to notional shares equivalent to approximately 4.9% of Atlas Iron’s ordinary shares. As a result, Fortescue has an aggregate physical and economic interest in 19.9% of Atlas Iron’s ordinary shares.

Fortescue said it does not intend to support the proposed Scheme of Arrangement between Atlas Iron and Mineral Resources on its current terms, but reserves the right to do so. The company also said a substantial holder notice and further details of the swap will be lodged in due course.

Atlas Iron is an independent Australian iron ore company, mining and exporting Direct Shipping Ore (DSO) from its operations in the Northern Pilbara region of Western Australia.