Atlas To Raise $85 Million To Fund Development & Exploration
Monday, August 6th, 2007
The directors of Atlas Iron Limited advise that the Company has resolved to raise up to approximately $85 million through the issue of up to 59.5 million ordinary shares at an issue price of $1.43 per share. Shares will be issued predominately to international and domestic institutional clients of Hartleys Limited, with strong participation from Atlasâ€™ existing largest shareholders.
Funds raised pursuant to the placement will allow Atlas to undertake the development of the Companyâ€™s 100% owned Pardoo Direct Shipping Iron Ore Project, with a portion of the funds being applied towards site capital and pre-payment of port facilities. Funds raised will further be applied towards the pre-feasibility study of Atlasâ€™ 100% owned 853 Mt Pardoo Magnetite Project and ongoing exploration of the Companyâ€™s various iron ore projects, where drill rigs are currently operating and will be for the remainder of this year and into 2008.
Atlasâ€™ Managing Director, David Flanagan stated â€œThe overwhelming support for the placement by our major shareholders and a number of large international and domestic institutional investors, validates the confidence Atlas has in its Pilbara Direct Shipping and Magnetite Iron Ore projects. The placement was 100% oversubscribed and Atlas remains on track to be in production of Direct Shipping Iron Ore by September/October 2008, while at the same time progressing towards development of its world class 853 Mt Magnetite Iron Ore Project.â€
The placement in Atlas will be made in two tranches. The allotment of 18 million Tranche 1 shares, which is not subject to shareholder approval and falls within the Companyâ€™s 15% placement capacity under ASX Listing Rule 7.1, will be issued with 10 days of this announcement. The allotment of 41.5 million Tranche 2 shares will be issued subject to shareholder approval at a meeting of shareholders scheduled for 6 September 2007.