Iron ore miner Atlas Iron says it has completed a $US275 million financing package to put it on track to produce 12 million tonnes per annum by December 2013.
The iron ore miner said it had also put in place an undrawn $50 million three-year "covenant lite" revolving facility which contained no earnings-based maintenance covenants.
The decison to adopt a lower term loan (down from $US325 million) and undrawn revolving facility will lower Atlas' overall cost of funding, the company said.
"The completion of the financing package delivers the company sufficient funds to complete the development of the Mt Dove, Abydos and Mt Webber mines and the Yard Two expansion works at Utah Point at Port Hedland," Atlas said in a statement.
Atlas said it continued to adopt a conservative approach to its capital management through modest debt levels in conjunction with incremental, staged project execution.
"These financing arrangements are totally consistent with Atlas' policy of achieving growth over both the short and long terms, while maintaining a conservative balance sheet," Atlas managing director Ken Brinsden said.
"Atlas believes it is prudent to have flexibile forms of financing and sufficient liquidity, while accessing the lowest cost source of funds available to the company at this stage of its development, to allow the company to implement its expansion strategy on its own terms."
