Atlas Iron Takes On Debt, Mount Gibson Cuts Jobs

Reuters reported Atlas Iron (ASX:AGO) took on debt for the first time and rival Mount Gibson Iron (ASX:MGX) moved to slash jobs and cut operations due to the slide in iron ore prices.

As quoted in the market news:

Those drastic steps were the latest evidence of threats to Australia’s mining boom, which have led big and small miners to shelve projects, and are now slicing into operations as they brace for more volatility.

Atlas lined up on Thursday a fully underwritten term loan of $325 million in a move to ensure it can fund its expansion at a time when cash flows have been thinned by a drop in iron ore prices to a three-year low of $87 a tonne last month.

Click here to read the full Reuters report.