Battling vanadium producer Atlantic has revealed it could take up to nine months to repair fire damage to the processing plant at its Windimurra mine in the Mid West.
Atlantic released a corporate update today, saying it estimated the cost of the fire, including damage as well as business interruption, would be in the vicinity of $100 million.
The company said it was working with its insurers regarding progressive payments under its comprehensive policy, which covers damage from the fire that occurred early this month.
The payments, as well as a long-term funding solution currently being discussed with financiers, are designed to keep Atlantic afloat, rebuild the plant and restart vanadium production.
Meanwhile, Atlantic said the majority of noteholders of wholly-owned subsidiary Mid West Vanadium would not take any action after it failed to place $US5 million into an interest reserve account.
Mid West Vanadium was required to deposit the funds on February 15 and pay the half-yearly interest payment on its senior secured notes.
The firm has 30 days to make the interest payment, while Atlantic said discussions with the majority of noteholders was ongoing.
The missed payment follows ratings agency Standard & Poor's downgrading the corporate credit rating of Mid West Vanadium to CCC- earlier this month.
Mid West Vanadium has been placed on 'CreditWatch', with negative implications.
Atlantic shares are currently in voluntary suspension, having last traded at 17.5 cents.
The company has requested the suspension to remain in place until it can provide more definitive details on a long-term funding solution as well as the progressive insurance payments.