Bloomberg reported that Australian iron ore producer that started shipping to China last year Atlas Iron Ltd will sell shares worth as much as AUD 117 million to help fund expanded production.

Atlas announced that it will sell AUD 105 million of shares to clients of Hartleys Ltd and a further AUD 11.7 million to existing holders.

The shares will be sold at AUD 1.39, 18% less than the last traded price on June 5 before the company went into a trading halt.

Atlas said that the funds will be used expand its Pardoo mine and start production at two other operations in Western Australia’s Pilbara region.

Pardoo began production in December and Atlas is targeting output of 1 million tonnes in the first year of operation. Atlas added that “Once it starts output from the Wodgina and Abydos mines, production may be 6 million tonnes in 2010 and 12 million tonnes by 2012.”

(Sourced from Bloomberg)