UPDATE 12.45pm: Beleaguered vanadium hopeful Atlantic has negotiated a cash lifeline with major shareholder and financiers to release $US9.9 million from quarantined cash reserves to keep the company a going concern.
Atlantic had been required to hold $US24.2 million in cash reserves as part of an indenture that govern its convertible notes with note holders including Droxford International.
However Atlantic has negotiated for $US9.9 million to be released from cash reserves to working capital and for the potential release of a further $US10 million early next year.
The money will be used to fund the trouble-plagued ramp-up of the company's Windimurra vanadium plant.
Atlantic says it is now hopeful of achieving full production capacity by June next year.
Managing director Michael Minosora said Atlantic was delighted that the majority of the holders of the notes had agreed to support the continued ramp-up of the plant at Windimurra.
"The consultation process with the majority of the holders of the notes has been beneficial for all involved in the Windimurra project as it has confirmed that whilst we are behind our original production schedule, our ramp-up plan is on the right track," he said.
"There has been tremendous progress made at Windimurra by our operations team in what has been a difficult period and we remain focused on significantly increasing vanadium production in the coming months."
The Windimurra plant has been beset by persistent production problems during its ramp-up.Atlantic shares were off two cents, or 6.25 per cent, to 30 cents shortly before the close of trade after touching an earlier low of 28 cents.