29/04/2010 - 09:23

Atlas confirms $63.5m capital raising

29/04/2010 - 09:23

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Atlas Iron has today confirmed it will raise up to $63.5 million to fund expansion plans for its operations in the Pilbara.

Atlas confirms $63.5m capital raising

Atlas Iron has today confirmed it will raise up to $63.5 million to fund expansion plans for its operations in the Pilbara.

The miner said it will raise the funds through a placement to international and domestic institutional shareholders, with 25.5 million shares to be issues at $2.49 each.

Hartleys is managing the placement, which is expected to be completed on May 7.

Shares in Atlas, which had previously been in a trading halt, dropped 12 cents to $2.57 at 11:01 AEST.

Funds from the raising will allow Atlas it accumulate a significant ore stockpile in the lead-up to the start of exports from the Utah Point port facility in Port Hedland, allowing it to maximise the number of shipments of iron ore in what is anticipated to be a period of very strong iron ore prices.

The ore to be stockpiled will come from Atlas' expanding Pardoo operations and the start of production at the Wodgina mine.

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