Altamin Secures $3.43M Institutional Backing Ahead of Retail Entitlement Offer
Altamin Limited has successfully closed the institutional tranche of its 45-for-100 entitlement offer, raising $3.43 million with full participation from its major shareholder, the Victor Smorgon Group. The retail offer opens on 29 September, presenting shareholders with a chance to invest at the same price.
- Institutional entitlement offer raises approximately $3.43 million
- Victor Smorgon Group fully subscribes, holding 53% voting power
- Retail entitlement offer opens 29 September for eligible shareholders
- Funds targeted for exploration at Lazio Project and maintenance of Gorno Project
- Board retains discretion over allocation of proceeds and shortfall placements
Institutional Support Signals Confidence
Altamin Limited (ASX – AZI) has successfully completed the institutional component of its accelerated non-renounceable entitlement offer, raising approximately $3.43 million. The major shareholder, the Victor Smorgon Group, which holds a controlling 53.02% stake, subscribed fully to its entitlement, underscoring strong internal confidence in the company’s strategic direction.
The offer involved issuing 137 million new shares at 2.5 cents each, representing a 45-for-100 share ratio. These new shares will rank equally with existing shares, ensuring no preferential treatment for new investors. The institutional tranche settled on 25 September, with shares allotted the following day.
Retail Offer Opens Next Week
Following the institutional success, Altamin is set to open the retail component of the entitlement offer on 29 September. Eligible retail shareholders in Australia and select international jurisdictions will have the opportunity to subscribe for new shares at the same price and ratio. The retail offer will remain open until 8 October, with a top-up facility allowing shareholders to apply for additional shares beyond their entitlement subject to availability.
CEO Geraint Harris expressed appreciation for the Victor Smorgon Group’s backing, describing it as a “strong vote of confidence” in Altamin’s future. He encouraged retail shareholders to carefully consider their participation, highlighting the offer booklet that will provide detailed information.
Funding Focused on Exploration and Project Maintenance
The proceeds from the entitlement offer are earmarked primarily for advancing exploration activities at the Lazio Project, a key asset in Altamin’s portfolio. Additionally, funds will support limited working capital expenses to maintain the Gorno Project in good standing. The Board retains flexibility to adjust the allocation of funds as project priorities evolve, reflecting the dynamic nature of mining exploration and development.
Altamin’s approach balances the need for ongoing exploration with prudent financial management, aiming to sustain project momentum while managing costs. The company also reserves the right to place any shortfall shares with institutional or high-net-worth investors within three months after the retail offer closes, providing further capital raising flexibility.
Market Implications and Next Steps
Shares resumed trading on an ex-entitlement basis on 23 September, reflecting the institutional offer’s closure. Investors will be watching closely as the retail offer unfolds, assessing shareholder uptake and potential dilution effects. The success of this capital raising will be pivotal in supporting Altamin’s exploration ambitions and maintaining its asset base.
Looking ahead, updates on the Lazio and Gorno projects, alongside the final retail offer results, will be key indicators of Altamin’s trajectory. The company’s ability to convert exploration potential into tangible value remains a critical focus for the market.
Bottom Line?
Altamin’s institutional backing sets the stage for retail participation, with exploration funding and project maintenance hanging in the balance.
Questions in the middle?
- Will retail shareholders fully subscribe to their entitlements at the same price?
- How will the Board prioritize fund allocation between Lazio and Gorno projects going forward?
- What impact will potential shortfall placements have on share dilution and control?
