Atlas Iron plans to raise up to $116.7 million to help fund the expansion of its Pilbara iron ore operations, the company announced today.
According to Atlas, the bulk of the capital will be raised through a $105 million placement to international and domestic clients of Hartleys Limited, with the remaining $11.7 million through a share purchase plan with existing shareholders.
“We are delighted with the support received for this capital raising from both new international and domestic institutional investors, and its existing shareholders,” Atlas Iron managing director David Flanagan said.
“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.
Atlas said the primary reason for raising the funds is to expand and develop the company’s 100% owned Pilbara iron ore projects, including an increase in production at its Pardoo DSO Project and the commencement of production at the Wodgina and Abydos DSO projects.
The placement will be made in two tranches, with shares to be issued at $1.39 per share, which represents an 11% discount to the 30 day weighted average price of Atlas shares.