Working Capital Needed To Fast-Track Projects
Australian iron ore junior, Atlas Iron placed its shares in a trading halt today pending an announcement regarding a capital placing.
Atlas looks set to raise $60 million to fast-track production plans to cash in on the rising price of iron ore price.
It is understood the miner wants to greatly increase its annual iron ore target of 6 million tonnes with the spot price now around $US190 a tonne.
Funds from the placement are expected to provide the additional working capital to ramp up output at its flagship Pardoo project and also to fast-track plans to bring its Wodgina and Abydos mines into production. Wodgina is due to start production in the second quarter of 2010, with shipments starting later in the year.
Shares in Aurox Resources, which Atlas recently agreed to takeover in a $143 million scrip bid were also brought to a trading halt.
Perth-based broker Hartleys is advising Atlas on the raising.
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