Atlas invests in Centaurus development

Company News

Atlas Iron Limited (ASX:AGO) will participate in a $15.2 million share placement and pay $5.2 million to maintain its 19.85 per cent holding in Centaurus Metals Limited (ASX:CTM).

The investment forms part of a $26.2 million equity raising by Centaurus to support the exploration and development of its iron ore projects in Brazil as it moves to production.

US based Liberty Metals & Mining Holdings will invest $11 million through a share placement after which it will emerge with a 12.95 per cent stake in Centaurus.

The funds raised will go to progress feasibility and development activities at Centaurus’ flagship Jambreiro Project and also to progress talks with potential lenders and debt financiers for the project before the end of the year.

In the first half of the 2012 financial year Atlas Iron booked a net profit of $6 million.