Atlas seeks $100m to grow Pilbara iron ore business

Atlas Iron Ltd 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 Ltd 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.