06/08/2012 - 11:04

Atlantic takes on more debt for Windimurra

06/08/2012 - 11:04

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Atlantic takes on more debt for Windimurra
Atlantic's Windimurra vanadium development in the Mid West.

Iron ore and vanadium miner Atlantic has lined up a new $50 million finance facility to boost its working capital as it ramps up production at its Windimurra development in the Mid West.

Atlantic announced today a $50 million convertible bond facility had been provided to it by Droxford International, which is also the company’s largest shareholder.

The bonds are convertible at 50 cents per share, with interest on the new facility set at 17.5 per cent per annum, Atlantic said.

“The facility will provide further working capital for the ongoing Windimurra ramp-up and general corporate purposes,” the company said in a statement.

The funding package is the second in five months Atlantic has lined up, after it secured $41.7 million in financing in March to cover cash shortfalls caused by delays in ferrovanadium and iron ore production at the Windimurra mine.

The March facility was made up of a $30 million convertible note issued to Droxford, and an $11.7 million placement.

The March notes originally had a conversion price of 97 cents but that has been reset to 50 cents.

The placement was priced at 88 cents per share, with managing director Michael Minosora tipping in $10 million and the remaining $1.7 million worth of shares placed with Droxford.

Atlantic had also planned to raise more equity via a share purchase plan but In March the company said it would not go ahead because of declines in the company’s share price.

Atlantic is aiming to reach full production capacity of 6,300 tonnes per annum of contained vanadium by the end of the year.

At 11:50AM, WST, Atlantic stocks were up 2.5 per cent, at 41 cents.

 

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