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Fire-hit Atlantic gets A$32.6m funding

Fire-hit Atlantic gets A$32.6m funding

Photo by Bloomberg

20th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Atlantic has secured a new A$32.6-million funding facility to fund operations while it awaits an insurance claim.

The vanadium producer previously reported that a fire at its Windimurra operation, in Western Australia, had caused about A$100-million in damages and business interruptions, with operational restart expected to take up to nine months.

The miner said on Thursday that the company’s largest shareholder Droxford International, would provide the new funding facility. A$3.6-million would be released to Atlantic subsidiary Midwest Vanadium in the near-term, to allow it to meet its immediate commitments.

The new financing proposal would also involve the standstill on Midwest Vanadium’s interest reserve account and interest payment obligations under its senior secured notes, until at least August this year.

Atlantic’s shares remained suspended on Thursday.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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