The West Australian reported that MinRes had purchased a 12.1% stake in Aquila.

It cited broking sources as saying the iron ore producer had bought 49.9 million Aquila shares at $A3.75 each from institutional investors.

MinRes added fuel to the fire by entering a trading halt pending an announcement regarding speculation over the Aquila buy.

Shares in Aquila reached a 52-week high of $3.77 yesterday morning.

Aquila’s major shareholder Baosteel teamed up with Aurizon Holdings last month to make a $3.40 per share takeover offer for Aquila.

Aquila has recommended shareholders take no action while an independent board committee considers the offer.

Yesterday, the company extended the consulting agreement with its executive chairman Tony Poli for a further six months.

His $750,000 per annum contract was set to expire at the end of the month but the extension will see the agreement expire on December 31, 2014.

Aquila said it expected to further review the agreement pending the outcome of the takeover bid.

The company also announced today the signing of native title agreements over its West Pilbara iron ore project with the Kuruma Marthudunera native title claim group.

The agreements allow for milestone and production payments to support the development of local communities.

Negotiations with another group, the Puutu Kunti Kurrama and Pinikurra, are underway and are expected to be finalised in the September quarter.

Aquila said the first native title agreement was an important step towards obtaining a mining lease for stage 1 of the WPIOP, which envisages production of 30 million tonnes per annum and will allow for the development of mine and rail infrastructure on claim areas.

Aquila holds 50% of the WPIOP, with US-based AMCI holding the balance.

Shares in Aquila were last trading 2% higher at $3.58.