Atlas Iron finalizing offtake deals
May 24, 2008
May 24 (Steel Guru) – Atlas Iron Ltd will cross a major threshold in its development when it announces an offtake deal in the next few weeks. The deal could be for one or more arrangements to buy some or all of Atlas’ ore, possibly by the end of the month and it marks a milestone in the company’s transition from iron ore explorer to miner and exporter.
Mr David Flanagan MD of Atlas said that the company had been approached with about 100 offtake offers, half of which could be considered seriously. He added that these included proposals from about 35 Chinese majors.
Mr Flanagan told journalists after the company’s annual general meeting in Perth that “These would either be massive conglomerate trading companies or massive steel mills. The balance are from Malaysia, Korea, Taiwan, the Middle East and some Indian groups, who are looking to develop a project in the Pilbara that they can then export into China.”
Mr Flanagan said that Atlas had tried to include as many shareholders as possible, but given volatile financial markets the best way to raise fund was through institutional investors and they had continued to buy shares.