Atlantic Ltd. (ASX:ATI) announced that it’s made a proposal to reacquire the Windimurra vanadium-iron ore project. Its major shareholder and creditor, Droxford International Ltd., supports the proposal.
Last February, Atlantic called in administrators for its subsidiary, which owns Windimurra. According to Mining Weekly, the company’s noteholders and major shareholders had been unable to agree on how to restructure the subsidiary.
As quoted in the press release:
The Proposal involves (among other things) the entry into a deed of company arrangement (DOCA) with the Administrators and Receivers and Managers of Midwest Vanadium Pty Ltd (Administrators Appointed) (Receivers and Managers Appointed) (MVPL) and Atlantic Vanadium Holdings Pty Ltd (Administrators Appointed) (Receivers and Managers Appointed) (AVHPL) (the Receivers) and an agreement (Sale Agreement) under which a newly incorporated 100% wholly-owned subsidiary of Atlantic (Purchaser) will acquire the Project (Transaction).
In exchange for the transfer of the Project, the Purchaser will pay $250,000 to be distributed to the Administrators and unsecured creditors in accordance with the terms of the DOCA.
To secure the Proposal, the Purchaser will pay a $1 million deposit to the Receivers, which will be refunded upon completion of the Transaction.