16/10/2013 - 14:50

Atlantic secures further $11.75m funding

16/10/2013 - 14:50

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Vanadium producer Atlantic has secured a further $11.75 million in unsecured funding from its biggest shareholder, Droxford International, the latest in a series of cash injections to sustain its working capital.

Atlantic secures further $11.75m funding
The Windimurra vanadium operation in the Mid West.

Vanadium producer Atlantic has secured a further $11.75 million in unsecured funding from its biggest shareholder, Droxford International, the latest in a series of cash injections to sustain its working capital.

The terms of the funding facility are yet to be finalised.

A portion of the funds will be provided to the company's wholly-owned subsidiary Midwest Vanadium following a discovery that there had been a technical breach of Midwest's senior secured notes contract as a result of the balance of the interest reserve account falling below the $US5 million minimum holding requirement.

The remainder of the funds will be used to provide further working capital for Midwest, the owner of the Windimurra vanadium and iron ore operation around 600 kilometres north of Perth.

Atlantic announced in August that it had lined up $20 million in high interest debt funding from Droxford to fund continued development at Windimurra, having previously taken on finance facilities of $28.5 million in April this year and $50 million last August from its major shareholder.

Atlantic shares were unchanged at the close of trade at 24.5 cents.

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