Terramin Faces Legal and Financial Challenges Despite Tala Hamza Progress

Tala Hamza Zinc Project Breaks Ground

Terramin Australia Limited marked a pivotal quarter with the completion of land acquisition for its Tala Hamza Zinc Project in Algeria. The Algerian Government finalized the acquisition of 234 hectares in October 2024, granting Terramin and its partners unrestricted access to the mining permit area. This critical milestone clears the way for the commencement of construction activities, a significant step toward unlocking one of the world's largest undeveloped zinc and lead deposits.

Following this, Terramin secured a substantial US$336 million Engineering, Procurement, and Construction (EPC) contract with Sinosteel Equipment & Engineering Co. Ltd in November 2024. This contract covers the construction of a 2.0 million tonnes per annum process plant, an underground mine, and essential infrastructure including a backfill plant and dry stack tailings storage. The mobilization of geotechnical drilling equipment and installation of administration cabins in late 2024 signal the tangible start of on-site development.

Bird in Hand Gold Project Faces Legal Challenges

In contrast to the progress in Algeria, Terramin's Bird in Hand Gold Project in South Australia encountered a significant legal setback. The Supreme Court of South Australia dismissed the company's application for judicial review against the Minister for Energy and Mining's refusal to grant a mining lease and miscellaneous purposes licence. The Court also upheld the Governor's reservation of the area under the Mining Act 1971.

Despite this ruling, Terramin announced its intention to appeal, underscoring the project's strategic importance. The Bird in Hand project boasts a high-grade resource with a feasibility study projecting a post-tax NPV8 of $141 million and an IRR of 80.5%, highlighting the potential value at stake.

Ongoing Projects and Exploration Activities

The Kapunda In Situ Copper Recovery Project continues to advance with the commissioning of new injection, extraction, and monitoring bores. Construction of plant and equipment for a full test extraction using lixiviant has been completed, with regulatory approvals anticipated shortly. This project represents an innovative approach to copper recovery in a historically mined area.

Exploration drilling under the $10.5 million agreement with JOGMEC at the South Gawler Ranges Project targeted IOCG and skarn-hosted copper and gold mineralisation. Drilling programs completed in late 2024 await laboratory analysis, promising further insights into the region's mineral potential.

Financial Position and Corporate Developments

Terramin's financial position remains constrained, with a cash balance of just $0.2 million at the quarter's end. However, the company secured extensions on key loan facilities with major shareholder Asipac Group Pty Ltd, extending terms to 30 June 2025 and increasing the standby term facility to $2.425 million. These arrangements provide critical short-term funding as Terramin navigates its development and legal challenges.

Board changes also took place, with Martin Janes appointed as Executive Director, replacing Kevin McGuinness. Janes brings extensive mining and financial expertise, a timely addition as the company advances its strategic projects.