Australian iron ore producer Atlas Iron has announced that it will raise up to $116.7 million to help fund the expansion of its operations in the Pilbara region of Western Australia.
According to a statement released by Atlas Iron, it will sell AU$105 million of shares to clients of Australian finance company Hartleys Ltd and a further AU$11.7 million to existing shareholders.
Atlas said, "The funds will be used to expand and develop Atlas' 100 percent 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 is mining at its 100 percent owned Pardoo Iron Ore Project, located 75 kilometers by road from Port Hedland in the Pilbara region of Western Australia, and completed its first shipment of Pardoo Direct Shipping Ore in early December 2008.
Atlas is planning to export one million mt of iron ore during its first 12 months of operations at the Pardoo Project, expanding its exports after the commissioning of the Utah Point port facility.
When combined with additional export tonnages from its Wodgina and Abydos DSO Projects, Atlas is targeting exports at an annualized rate of six million mt of iron ore in 2010, growing to 12 million mt by 2012.