Troubled miner Atlas Iron raised just $86 million in capital funding, well short of its $180 million target.
The cash raised from existing shareholders, contractors and new investors will give the miner further protection from volatile iron ore prices.
Managing director David Flanagan says the result is an 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 says.
“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 raising was at 5 cents per share, a 58% discount to the last price recorded before a trading halt.
Atlas had planned to mothball its mines but managed to cut costs, with the help of its suppliers, and keep producing after an improvement in the price of iron ore.
The company has since re-started mining at its Pilbara iron ore mines of Wodgina, Abydos and Mt Webber.
Atlas Iron has forward sold much of its production and says it won’t be affected by the current price of $US50 a tonne.
Atlas shares are due to resume trading July 27.
Business Insider Emails & Alerts
Site highlights each day to your inbox.