Terramin Reports Revised Tala Hamza Study and Bird in Hand Court Win

• Tala Hamza moves from planning to early-stage development with government incentives
• Bird in Hand Gold deposit returned to Terramin after court overturns mining reservation
• Kapunda ISR trial continues, results pending for next evaluation phase
• Low cash balance of $0.1 million offset by $1 million shortfall share placement
• Ongoing financing discussions with major shareholder Asipac and Algerian banks

Tala Hamza Project Accelerates with Government Support and Revised Mining Study

Terramin Australia (ASX:TZN) has shifted gears at its Tala Hamza Zinc Project in northern Algeria, moving from planning into early-stage development. Following the completion of land access and resident relocation, site preparation activities are underway, enabling clearing and access works. The project’s strategic importance is underscored by visits from senior Algerian officials, including the Prime Minister, highlighting strong government backing.

The project’s formal registration with the Algerian Investment Promotion Agency unlocks investment incentives such as tax exemptions and customs concessions, alongside access to government-supported infrastructure and financing frameworks. This aligns with ongoing infrastructure developments in power, logistics, and port facilities near Bejaia, the project’s proximate port city.

Terramin released a revised 2.0Mtpa mining study that upgrades throughput from previous estimates, projecting a 20-year mine life with average annual production of approximately 178,000 tonnes of zinc concentrate and 33,000 tonnes of lead concentrate. The study estimates start-up capital at US$415 million, with a post-tax nominal NPV8 of around US$640 million and an IRR of 23%, based on commodity price assumptions of US$1.27/lb zinc and US$0.91/lb lead. Operating costs remain competitive, with C1 cash costs averaging US$0.56/lb and all-in sustaining costs at US$0.61/lb zinc equivalent.

While the production target incorporates Mineral Resources, including some Inferred Resources, Terramin cautions there is no certainty these forecasts will be realised. The company is actively pursuing project financing, with advanced discussions underway with an Algerian state-owned bank for long-term funding on competitive terms. This follows a series of recent announcements detailing site preparation and government incentives, including the updated 2.0 Mtpa mining study and key Algerian incentives secured.

Bird in Hand Gold Project Reverts to Terramin After Court Decision

The South Australian Court of Appeal has set aside the Mining (Reservation from Act) Proclamation 2023, effectively returning the Bird in Hand Gold deposit to Terramin’s Exploration Licence 6447. The court dismissed all other grounds of appeal, marking a significant legal win for the company.

Bird in Hand, located roughly 30km from Terramin’s Angas Zinc Mine, had been subject to regulatory uncertainty since 2023. The project’s 2020 feasibility study suggested a robust post-tax NPV8 of A$141 million with an IRR exceeding 80%, based on a gold price of A$2,300 per ounce. It projected average annual production of 44,700 ounces at low cash costs, with processing planned at the nearby Angas facilities.

With the deposit now back under Terramin’s control, the company is reviewing strategic, legal, and development options. Meanwhile, the Angas site remains on care and maintenance, fully compliant with environmental obligations. This judicial outcome removes a significant regulatory hurdle but leaves open questions about the project’s future direction and timing.

Kapunda Copper ISR Trial Progresses While Exploration Drilling Yields No Significant Mineralisation

At the Kapunda In Situ Copper Recovery Project, Terramin holds a 25% free-carried interest while Environmental Copper Recovery (ECR) operates the project and funds ongoing work. The ISR trial continued through the quarter, focusing on lixiviant injection and recovery phases. Results are expected soon and will guide further technical and financial evaluations, including potential commercial development pathways.

Elsewhere, exploration drilling resumed at the South Gawler Ranges Project under a farm-in agreement with JOGMEC. A single diamond drill hole targeting IOCG-style mineralisation was terminated at 850 metres without significant findings, leading to the cessation of that drill program for now.

Financial Position Tight but Supported by Rights Issue and Loan Facilities

Terramin ended the quarter with a modest cash balance of A$0.1 million but secured a further A$1 million through a shortfall share placement following a pro-rata non-renounceable rights issue. The rights issue raised approximately A$38 million before costs, primarily allocated to reducing related-party debt with major shareholder Asipac Group Pty Ltd and advancing the Tala Hamza project.

Asipac’s shareholding increased to the 45% cap under the underwriting agreement, with proceeds applied mainly as debt discharge rather than cash inflow. Terramin also maintains loan facilities totaling A$32.1 million with Asipac, of which A$31 million was drawn at quarter-end, plus an unsecured US$6.68 million convertible note maturing in January 2027.

Cash flow from operations was negative A$0.89 million for the quarter, reflecting ongoing expenditure on exploration, evaluation, and corporate costs. The company estimates it has approximately 1.3 quarters of funding available at current expenditure levels but is actively pursuing additional financing options, including discussions with potential financiers and support from Asipac.

Payments to related parties, including directors’ fees, totalled A$38,000 during the quarter.

Bottom Line?

Terramin’s forward momentum at Tala Hamza is clear, but its tight cash runway and unresolved Bird in Hand strategy highlight the need for fresh capital and decisive project direction.

Questions in the middle?

• Will Terramin secure long-term financing to support Tala Hamza’s $415 million capital requirement?
• How will the company strategically reposition Bird in Hand following the court ruling?
• What impact will Kapunda’s ISR trial results have on Terramin’s copper exposure and valuation?