Terramin Faces Legal and Funding Challenges Amid Project Development Push

Progress at Tala Hamza Zinc Project

Terramin Australia has taken a key step forward at its Tala Hamza Zinc Project in Algeria by lodging an application with the Algerian Investment Promotion Agency (AAPI). This move seeks to secure substantial tax exemptions and government infrastructure support, including exemptions from corporate and land taxes and assistance with electricity and road infrastructure. Tala Hamza, one of the world's largest undeveloped zinc and lead deposits, holds a significant resource base, with Terramin managing the project through its 49% stake in Bejaia Zinc & Lead Spa.

However, the project’s geotechnical drilling program has encountered delays. The completion of two remaining drill holes, critical for finalising underground mine design, has been postponed due to the need to relocate local residents. Despite this, joint venture partners have fully funded the project costs during the quarter, maintaining momentum on this strategic asset.

Legal Appeal and Care at Bird in Hand Gold Project

In South Australia, Terramin continues to pursue its Bird in Hand Gold Project amid ongoing legal proceedings. After the Supreme Court dismissed Terramin’s judicial review in early 2025, the company lodged an appeal, which was heard by the South Australian Court of Appeal in November 2025. The appeal challenges the government’s refusal to grant a mining lease, despite prior departmental recommendations supporting the project’s progression without significant environmental impact. The court’s decision is anticipated later this year.

Meanwhile, the adjacent Angas Zinc Mine site remains under approved care and maintenance, with Terramin incurring costs related to legal processes and site upkeep. The company remains compliant with environmental obligations, underscoring its commitment to responsible operations.

Advances in Copper Recovery and Exploration

Terramin’s Kapunda In Situ Copper Recovery Project, located north of Adelaide, has entered a critical testing phase. Full in-situ recovery testing using lixiviants commenced in July 2025, with early results described as encouraging. Final results are expected in the March quarter, which will inform the financial viability of this innovative copper and gold recovery method. Terramin holds a 25% free-carried interest in the project, with Environmental Copper Recovery Pty Ltd operating and funding the majority of activities.

Exploration efforts continue at the South Gawler Ranges Project, where a new drilling campaign targeting a potential iron oxide copper gold (IOCG) deposit is scheduled to begin in February 2026. These exploration activities are supported by joint venture partner JOGMEC, which has funded recent survey and heritage assessments.

Capital Raising and Financial Position

To underpin its development and exploration ambitions, Terramin successfully completed a pro-rata non-renounceable rights issue, offering one new share for every 2.1 shares held at $0.038 per share. The offer aimed to raise up to approximately $38.3 million before costs, with proceeds earmarked for partial repayment of related-party debt, project development, legal costs, and exploration programs.

Following the rights issue, major shareholder Asipac Group Pty Ltd received 235 million shortfall shares in exchange for cancelling debt owed by Terramin’s subsidiary, increasing its holding to the maximum permitted 45%. This transaction materially reduced related-party debt while preserving cash. Discussions continue regarding the placement of remaining shortfall shares, with the offer closing extended to 8 March 2026.

Despite a low cash balance of $0.1 million at quarter-end, Terramin has access to $1.1 million in undrawn loan facilities and has received shortfall applications worth $1.0 million post-reporting date. The company remains focused on managing its financial position prudently while advancing its portfolio.

Environmental and Safety Compliance

Terramin reported no recordable injuries or environmental compliance breaches during the quarter, reflecting ongoing commitment to safety and regulatory standards across its operations.