Midwest Vanadium receives $29.7 million in funding from shareholder

By Kali Hays

New York, April 14 - Atlantic Ltd.'s wholly owned subsidiary, Midwest Vanadium Pty. Ltd., received $29.7 million in secured financing from Atlantic's major shareholder Droxford International Ltd., according to a Monday news release from the company.

The funds have a coupon of 17% per annum and will mature on Aug. 15.

As previously reported, the funding facility and insurance proceeds will support the company while it rebuilds its beneficiation plant, which was damaged by a fire, and give it flexibility to negotiate a longer-term restructuring, according to a prior news release.

The receipt of the financing also marks the final condition of a forbearance agreement previously negotiated by an informal group of senior secured noteholders of Midwest regarding its failure to pay a February interest payment on the notes.

The forbearance agreement will expire on Aug. 15 as long as Midwest does not default on the senior secured notes.

Atlantic is a Perth, Australia-based company engaged in the acquisition, development and operation of the Windimurra vanadium project.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.