Atlas
Iron Limited (ASX: AGO)
ASX
RELEASE
22 APRIL 2008
ATLAS TO RAISE $100 MILLION TO ACCELERATE GROWTH OF
PILBARA IRON ORE
BUSINESS
Atlas Iron
Limited (ASX: AGO) (“Atlas” or “the Company”) is
pleased to advise that the Company has resolved to raise up to $100 million
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
Atlas is on track for commencement of production in August this year and
production is targeted to ramp-up to 12Mtpa of Pilbara DSO by 2012. Funds
raised will also be applied to 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 stated “We are delighted with the
quality of new international and domestic institutional investors we have
introduced to the share register through the placement following an
international roadshow facilitated by our corporate adviser Hartleys Limited
that saw Atlas presenting to the world’s preeminent mining investment
funds. 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.”
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 of this announcement. The allotment of up to 20
million Tranche 2 shares will be issued subject to shareholder approval at a
meeting of shareholders currently scheduled for 23 May 2008.
For further details, please contact
David
Flanagan
Managing
Director
Atlas iron
Limited
Tel: +61 8
9476 7900
READ CORPORATE
Public
Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
PLEASE NOTE:
This
e-mail and any attachments may contain confidential and/or privileged material
and is for the intended addressee(s) only. If you are not an intended
addressee, you must not use, copy, retain, disclose or distribute this
information. Please notify the sender immediately by return e-mail and delete
the message from your system. If you believe that this message constitutes a
Commercial Electronic Message (CEM) under the Spam Act 2003 and you wish to
unsubscribe please contact the originator of this message with the subject line
of unsubscribe.
Note:
Virus scanning is carried out on all incoming and outgoing email, but cannot be
guaranteed to be timely, secure, error or virus-free. To protect against
computer viruses, e-mail programs may prevent sending or receiving certain
types of file attachments. If you are having problems please check your e-mail
security settings to determine how attachments are handled.