Atlas Iron Limited
(ASX:AGO) is ready to appoint an investment bank to help find an equity partner for its early-stage McPhee Creek mine, in a deal that could value the asset at up to $700 million, according to media reports.
Atlas Iron executive director Mark Hancock told media the company is looking for partners at a project level.
Mr Hancock says any partnership would be around the 30 per cent level.
He says that initial interest in the McPhee Creek project had come from Asian trading houses and steel mills, and hoped that a partner could be set in stone by early next year.
Mr Hancock says a deal would probably be beneficial for existing shareholders, who would face reduced risk of being diluted by an equity capital raising.
Atlas Iron booked a net loss of $245 million in fiscal 2013.
