AGO 0.00% 4.5¢ atlas iron limited

atlas shares soar after ore buyer steps 4ward

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    Atlas shares soar after ore buyer steps forward

    3rd November 2008, 13:15 WST

    Shares in Atlas Iron soared today after the company secured an agreement with a “medium-sized Chinese steel mill” for the sale of the first iron ore shipment from the Connie Deposit at its Pardoo direct shipping ore project.

    At 1.25pm, Atlas was up 15.5 cents, or 19.02 per cent, to 97 cents with more than 2.7 million shares changing hands.

    Company managing director David Flanagan said Atlas was looking forward to developing a long-term relationship with the customer, with the firm noting in an announcement that the steel mill had “expressed a very strong interest in a long term off-take agreement”.

    “Off-take negotiations for the balance of the Pardoo iron ore are ongoing and the Company expects to complete and disclose further contracts in the short term,” the company said.

    Atlas secured the final regulatory approvals it needed to commence mining in early October, but shares in the firm had headed downwards since then as the company struggled to find a buyer.

    As late as two weeks ago, the company planned to sell its maiden 60,000 to 65,000 tonne shipment on the less lucrative spot market.

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