PERTH (miingweekly.com) – Vanadium miner Atlantic has secured a new funding facility worth around A$28.5-million, to provide working capital for the ramp-up of its Windimurra project, in Western Australia.
The new funding facility was provided by its largest shareholder, Droxford International. The maturity date of the facility was March 12, 2014, and interest on the facility was payable at the rate of 22.5% a year, semi-annually in arrears.
Atlantic said on Tuesday that an initial A$10-million drawdown of the facility had now occurred, with the balance of the facility expected to be drawn down before the end of April.
Meanwhile, Atlantic subsidiary Midwest Vanadium had entered into an agreement with the majority of the company’s senior note holders to reduce the minimum holding requirements in Midwest Vanadium’s interest reserve account to nil, subject to conditions.
The subsidiary had also made an amendment to its research and development reimbursement claim of A$2.1-million for the 2012 financial year. The company now estimated that it would be entitled to a reimbursement claim for the 2013 financial year for a similar amount to that of the previous year.
The funds accumulated through these initiatives would also be put towards the ramp-up of the Windumurra project, Atlantic said.