Emerging Australian iron ore miner Atlas Iron Ltd has announced that it will raise up to AU$63.5 million ($59 million) through placement of new company shares.
A company press release said that the proceeds will be used for Atlas to accumulate a significant ore stockpile in the lead-up to the start of exports from the Utah Point port facility in Port Hedland in the Pilbara region of Western Australia, allowing Atlas to maximize the number of shipments of iron ore in what is anticipated to be a period of very strong iron ore prices.
The Perth-based company said that it is selling 25.5 million shares at AU$2.49 each, representing a 7.4 percent discount on the closing price of Atlas' shares on Friday 23, April, 2010. The placement is expected to be completed on May 7, 2010.
Atlas Iron Limited mines and exports from its 100 percent-owned Pardoo Iron Ore project, located 75 km by road from Port Hedland.
As SteelOrbis previously reported, Atlas agreed to buy Aurox Resources Ltd, a more junior iron ore miner, in a deal worth AU$149 million. Shareholders of Aurox will be asked to approve the scheme at meetings expected to be held in late May 2010.