PERTH (miningweekly.com) – ASX-listed Atlantic has called in administrators for its operating subsidiary Midwest Vanadium, which owns the Windimurra vanadium and iron-ore project, in Western Australia, after the company’s note holders and major shareholders were unable to agree on the restructure of Midwest Vanadium.
Discussions between shareholder Droxford International and the note holders have been under way since February last year, regarding additional funding required to implement Midwest Vanadium’s business plan to restart the Windimurra project, after a fire ripped into the beneficiation plant, causing some A$100-million in damages.
Atlantic told shareholders on Thursday that the parties have not been able to reach a mutually-acceptable agreement, and as a result, the discussions have now been terminated. As a result, administrators have been appointed to Midwest Vanadium, as there was no reasonable prospect for a consensual restructure being agreed upon.
The note holders have also appointed receivers and managers to Midwest Vanadium
With some A$13.5-million cash-in-hand, Altantic itself would continue to operate, and the company said on Thursday that it would continue to progress its insurance claim on the Windimurra fire.
To date, Atlantic and Midwest Vanadium have received A$87-million from insurers in relation to claims, and Atlantic believed that further material amounts were due and payable under the policies.