Atlas raising falls short
PERTH (miningweekly.com) – Embattled miner Atlas Iron has fallen more than A$90-million short in its capital raising plans.
The miner last month announced plans to raise up to A$180-million in a share placement and a participation offer.
It was planned that some A$50-million would be raised through a share placement to new and existing shareholders and A$30-million raised through a share placement to key contractors. A further A$100-million was hoped to be raised through a participation offer to eligible shareholders
The miner said on Monday that, at the close of the offer period, Atlas had received valid applications for around A$86-million from existing shareholders, contractors and new investors.
Despite the missed target, MD David Flanagan said he was delighted with the immense vote of confidence in the company, particularly in light of the recent volatile market conditions.
“This is an outstanding result for Atlas shareholders, for the 700 people who rely on Atlas for work and for the state and federal governments that use our royalties and taxes to provide essential services.”
Flanagan said the raising would strengthen the company’s balance sheet considerably, giving Atlas a measure of further protection against the drop in the iron-ore price, and would enable the company to take advantage of opportunities as they arose.
“When this is combined with our new, lower cost base, which we are continuing to optimise, I am confident Atlas has a bright future.”
The iron-ore miner recently resumed mining operations at its Abydos, Wodgina and Mt Webber mines and was targeting a production rate of 14-million to 15-million tonnes a year by year-end.
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