17/02/2011 - 10:46

Atlantic raises $US335m for Windimurra

17/02/2011 - 10:46

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Perth-based Atlantic has settled its issue of $US335 million ($A334.26 million) of notes to fund the completion of the Windimurra vanadium mine in Western Australia.

Perth-based Atlantic has settled its issue of $US335 million ($A334.26 million) of notes to fund the completion of the Windimurra vanadium mine in Western Australia.

The senior secured notes will have a coupon of 11.5 per cent and are due in 2018, having been sold to North American, Asian and European institutional investors.

The funds raised would be used to complete construction and commissioning the company's Windimurra vanadium project, to acquire certain related assets, to retire existing external debt and to provide further working capital, Perth-based Atlantic said in a statement on Thursday.

The Project is expected to commence production in the third quarter of calendar 2011, with a capacity of 5,700 tonnes per annum of contained vanadium and 1 million tonnes per annum of iron ore fines.

Vanadium is used as an alloy addition in steel or titanium.

Atlantic managing director Michael Minosora said the successful note offering marked a major milestone for Atlantic and for the development of Windimurra.

"This successful note offering means MVPL is fully funded to complete Windimurra and see it into production and beyond. Our team worked diligently to bring financing of Windimurra into fruition", he said.

"We were able to build a very high quality book of investors which validates our confidence in the future of Windimurra and Atlantic's wider corporate strategy."

Mr Minosora said Atlantic was also assessing opportunities to optimise its operations.

"Recent positive drilling results from our grade control drilling program facilitate the development of a high grade mining strategy.," he said.

"We are also assessing the market viability from the steel and heavy aggregate sectors of mining the iron and titanium enriched zone found in our ore.

"Over the coming months we will also work on the production process to identify additional vanadium capacity."

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