Atlantic to raise A$55m for Windimurra vanadium project development

Atlantic (ASX: ATI) has announce the proposed issue of 1,262,500,000 shares at 4.4 cents per share to raise $55,550,000 as part of its plans to commission the Windimurra vanadium project in Western Australia.

The shares will be issued to strategic international investors to raise $45,550,000 and Australian and international institutional investors to raise $10,000,000.

Lead Managers to the capital raising were Mirabaud Securities LLP and RBS Morgans Limited.

Atlantic will use the funds raised to provide a loan to Midwest Vanadium Pty Ltd (MVPL), the company that holds 100% of the Project.

Atlantic will provide the loan to MVPL on a first ranking secured basis alongside other first ranking secured lenders and will also receive a commercial rate of interest on the loan during the term of the debt facility.

These funds, together with new lease finance and working capital facilities, will allow MVPL to complete the construction and commissioning of the Project.

Michael Minosora, Atlantic’s managing director, said “the success of this capital raising highlights the strong support for our plans to commission the world scale Windimurra vanadium project.”

“Windimurra is a high quality project with a significant reserve base that is approximately 85% complete.”

“Since we announced the agreement to acquire Windimurra, we have worked hard to identify crucial cost savings that we believe will place the project in a highly competitive position in the global vanadium industry cost curve.”

“We believe Windimurra is a great opportunity for Atlantic shareholders and we look forward to working with MRL to bring the Project into production next year,” he added.

A consortium of Atlantic and Mineral Resources Limited (MRL) is currently working towards completion of the transaction to acquire an effective 90% equity interest in MVPL.

Atlantic and MRL are on track to finalise the acquisition of an effective 90% equity interest in MVPL, with completion of the transaction now expected on or around 6 August.

Following completion of the transaction, Atlantic will hold an effective 62.5% equity interest in MVPL and will also be the largest first ranking secured lender to MVPL.

Completion of the placement of shares is subject to the approval of Atlantic shareholders and completion of the acquisition of an interest in MVPL.