Atlas Iron Limited (ASX:AGO)
Perth, June 15, 2009 AEST (ABN Newswire) - Atlas Iron Limited (ASX:AGO) is pleased to announce that it will raise up to A$116.7 million to help fund the expansion of its Pilbara operations.
Atlas said the money would be raised through a A$105 million placement to international and domestic clients of Hartleys Limited ("Placement") and an A$11.7 million Share Purchase Plan to existing shareholders ("SPP").
The funds raised will be used predominantly to expand and develop Atlas' 100% owned Pilbara iron ore projects, including an increase in production at its Pardoo DSO Project and the commencement of production at Atlas'Wodgina and Abydos DSO projects.
Atlas' Managing Director, David Flanagan Atlas was "delighted with the support received for this capital raising from both new international and domestic institutional investors, and its existing shareholders."
"The success of this capital raising, which was very heavily oversubscribed, will enable Atlas to execute its planned rapid paced development of its Pilbara iron ore business," he said.
The details of the capital raising are:
- shares under the Placement and the SPP will be issued at A$1.39 per share, representing an 11% discount to the 30 day weighted average price of Atlas' shares;
- the Placement will be made in two tranches (Tranche 1 and Tranche 2);
- 42 million Tranche 1 shares, which are not subject to prior shareholder approval, will be issued shortly;
- 33.5 million Tranche 2 shares will be issued subject to prior shareholder approval at a meeting of Atlas' shareholders scheduled for 20 July 2009; and
- 8.4 million shares will be offered under the SPP to persons registered as shareholders of Atlas as at 12 June 2009, with SPP documentation to be sent to eligible shareholders shortly. The SPP will open on Monday, 22 June 2009 and close on Monday, 6 July 2009.
About Atlas Iron Limited
Atlas Iron Limited (ASX:AGO) is an independent Australian iron ore company, mining and exporting Direct Shipping Ore (DSO) from its operations in the Northern Pilbara region of Western Australia. Since listing on the ASX in late 2004, Atlas has grown rapidly and is now a member of the ASX100 index.
| ||
|
