Atlas eyes A$100mln issue to fund iron ore mine

SYDNEY: Australia's Atlas Iron Ltd said on Tuesday it plans raise A$100 million ($94 million) in a share placement to accelerate growth at its outback iron ore mine, where it plans to start production in August. Atlas said it would issue 50 million ordinary shares at $2 each to major shareholders and clients of Perth stockbrokers Hartleys Ltd for development of the mine in Australia's Pilbara region. Atlas stock was up 3 percent to A$2.27 in afternoon trading, bucking a modest decline in the index. The company is targeting production of 1 million tonnes of ore a year in its first year of operation, increasing to 3 million tonnes annually by 2010. ($1=A$1.06)