Atlantic has lodged a prospectus with the Australian Securities Exchange, seeking to raise $55 million through a capital raising with the intention of the company recommencing trading.
Atlantic has lodged a prospectus with the Australian Securities Exchange, seeking to raise $55 million through a capital raising with the intention of the company recommencing trading.
Shares in Atlantic have been in a trading halt since August 13 pending compliance with the requisite ASX listing rule requirements.
The capital raising is part of the 100 per cent acquisition of the world scale Windimurra vanadium project.
Last month Atlantic announced a complex series of deals worth more than $76 million to buy the project and acquire the mothballed project's beneficiation plant.
Atlantic has executed its final definitive agreement to acquire 100 per cent of Midwest Vanadium, the company that owns the project.
In a statement to the ASX, Atlantic said it has committed to provide a new secured loan to Midwest Vanadium of $50 million from the proceeds of the prospectus offer.
See company statement below:
Atlantic Ltd (ASX: ATI, Atlantic) is pleased to announce the lodgment of a prospectus in relation to its $55.5 million capital raising and compliance with the requirements for reinstatement to trading on the Australian Securities Exchange (ASX).
The capital raising is to be completed as part of the acquisition of 100% of the world scale Windimurra vanadium project.
Atlantic has today executed the final definitive agreements to acquire 100% of Midwest Vanadium Pty Ltd (MVPL), the company that owns 100% of the Windimurra vanadium project.
As part of the acquisition, Atlantic has committed to provide a new secured loan to MVPL of $50 million from the proceeds of the prospectus offer.
The project is targeting annual production of 5,700 tonnes of contained vanadium and 1 million tonnes of haematite iron ore fines at nameplate capacity.
The project hosts a large vanadium resource and existing processing plant that is substantially developed, with the main outstanding items to be completed prior to the commencement of production being the vanadium refinery and the tailings dam.
Shares in Atlantic have been suspended since 13 August 2010 pending compliance with the requisite ASX listing rule requirements.
Following receipt of funds from the capital raising and completion of the acquisition of MVPL, which is expected to be completed this month, Atlantic will immediately apply to the ASX for reinstatement of its shares.
The capital raising is a limited offer to strategic investors and to Australian and international institutional investors identified by the Directors of Atlantic.
Following completion of the acquisition, Atlantic will procure additional debt facilities for MVPL to allow it to complete construction and commissioning of the project, along with the acquisition of the existing crushing and beneficiation plant at site.
Negotiations are progressing with a number of potential debt funding partners for MVPL, as are discussions with potential off-take partners interested in securing vanadium and haematite fines from the project.
