Atlas looking for equity partner

Atlas is ready to appoint an investment bank to find an equity partner to take around a 30% stake in its McPhee Creek mine.

Atlas Iron (AGO) is on the brink of appointing an investment bank to search for an equity partner for its early-stage McPhee Creek mine that could see the asset valued at $700 million, The Australian reports.

At the Bank of America Merrill Lynch Conference in New York the iron ore miner said the partner would come in at a project level and would take up around a 30% stake in the operation, according to the newspaper.

The Australian says Atlas hopes to select the partner by early next year.

McPhee Creek mine holds about 250 million tonnes in iron ore and was owned by Giralia Resources when Atlas bought the company for $828 million in late 2010.

Atlas has almost halved its share price to 86.5 cents over the past year even as the iron ore price has jumped 40% to $US135 per tonne over the same period.

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