A $25 million share placement by Atlantic will be used to accelerate ramp up at the company’s Windimurra vanadium project in WA. The miner announced that the $1.20 per share placement comprised about 15.155 million shares as an unconditional component
raising $18.186 million and 5.678 million shares to raise $6.814 million, conditional on shareholder approval.
Atlantic reported that shareholder approval for the conditional placement will be decided at an extraordinary general meeting to be held in late January 2012. The proceeds will finance improvements and modifications which could potentially accelerate the planned 18 month ramp-up to full capacity at Windimurra.
“While the early phase of commissioning has been slower than we would have liked, delaying first revenues, management believes that the funds raised in this placement will enable the plant to achieve full production capacity in line with the original schedule,”
Atlantic managing director Michael Minosora said in a statement.
“The placement proceeds will be used to implement specific process improvements and modifications to optimise operation of the plant, and to temporarily supplement our operating and technical teams in the plant.” Vanadium is linked to global steel consumption and is primarily used as an alloy to steels to increase strength and improve high temperature performance. Windimurra is one of the largest proven vanadium reserves in the world.
“We only acquired Windimurra in 2010 and the team has made a great effort to bring it to where it is today and we are confident in its future,” Mr Minosora said. In recent months, Atlantic mined and stockpiled about 240,000t of vanadium-bearing ore, while 58,000t of ore was processed through the crushing, milling and beneficiation plant to produce magnetite concentrate. Windimurra has proven and probable reserves of 127.6 million tonnes of vanadium oxide grading 0.47 per cent vanadium oxide, and an expected mine life of 28 years based on feed rates of 4 million tonnes per annum.
By Rachel Seeley