The Australian understands that Atlas had completed documentation for a “company-transforming transaction” with one of three so-called strategic parties with which it was in discussions, but the deal went unsigned after iron ore price posted its biggest single-day fall to its lowest level in more than six years.

Sources close to the deal said it would have paved the way for Atlas to close its equity raising oversubscribed. Instead, the raising brought in $86 million out of a maximum possible $180m.

Atlas managing director David Flanagan declined to comment on the negotiation with the strategic investor, but said he was pleased with the response to the equity raising.

“Given the terrible market we had, I don’t think you can call that anything but a vote of confidence,” Mr Flanagan said.

“We had a Greek crisis, we had a Chinese crisis and the worst iron ore price fall ever since the index was put together. The fact we can come through that and bank $86m means we’ve saved 700 jobs, we’ve kept three mines running and we’ve got 33,000 shareholders whose shares are still going to be able to be listed and traded.”

The final commitment is higher than many in the market had expected, as even before the recent fall in iron ore prices there had been scepticism about the raising given the miner will still face tight margins, queries over its longer term mine life and ongoing concerns about its ability to resolve its debt issues once and for all.

“There seem to be people out there for whom success is Atlas’s failure. I like the idea that our success might disappoint them, and we expect to continue to disappoint those who might find pleasure when we stumble from time to time,” Mr Flanagan said.

“We’re not just stronger than we were before this happened, but we’re stronger than a lot of our competing companies.”

Atlas shares are now set to resume trading next week for the first time since April. In the months that Atlas has been suspended, it has shut and then restarted its three Pilbara iron ore mines, negotiated a restructure of its rates with contractors and suppliers, and now topped up its cash position through the equity ¬raising.

The company is likely to have between $100m and $120m in cash to its name by the end of the month once the proceeds of the raising are received, providing some breathing space, but Atlas will still need to act to address its $355m debt pile, which is mostly due for repayment at the end of 2017.

Mr Flanagan said the company would sit down with its advisers Lazard in coming days to map out a plan to refinance its debt.

He admitted the company could consider another equity raising in the years ahead.

“There’s a reasonable chance in the next few years we will go back to market again,” Mr Flanagan said.

About $43m of the raising was taken up by contractors and suppliers to Atlas as part of the renegotiations of their terms. Of the remaining $43m, it is understood about two-thirds was taken up by smaller retail shareholders rather than institutional investors.

The offer was priced at just 5c a share — compared to Atlas’s last price of 12c — with one free option priced at 7.5c.