Atlas to raise $100m to accelerate Pilbara growth

Atlas Iron has resolved to raise up to $100m through the issue of up to 50....

  Atlas Iron has resolved to raise up to $100m through the issue of up to 50 million ordinary shares at an issue price of $2.00 per share to clients of Hartleys Limited and existing major shareholders.The capital raising will allow Atlas to accelerate growth of its Pilbara iron ore business where the company is on track for commencement of production in August this year, with production targeted to ramp-up to 12Mtpa of Pilbara DSO by 2012. Atlas will also use the funds raised to further ongoing exploration across the company’s iron ore projects, where drill rigs are currently operating and will be for the remainder of this year.Atlas’ Managing Director, David Flanagan said: “We are delighted with the quality of new international and domestic institutional investors we have introduced to the share register through the placement.” “Atlas is also very pleased with the support received from our major shareholders. The success of the placement, which was very heavily oversubscribed, will strongly grow the pace of development of Atlas’ Pilbara iron ore business,” he said.The placement in Atlas will be made in two tranches. The allotment of up to 30 million Tranche 1 shares, which is not subject to shareholder approval and falls within the company’s ASX Listing Rule 7.1 15% placement capacity, will be issued in approximately 10 days. The allotment of up to 20 million Tranche 2 shares will be issued subject to shareholder approval at a meeting of Atlas shareholders, currently scheduled for May 23, 2008.