Terramin Reports $0.1 Million Cash, Advances Tala Hamza Construction and Financing

Tala Hamza Zinc Project Advances with Infrastructure and Financing

Terramin Australia Limited (ASX:TZN) has ramped up construction activities at its flagship Tala Hamza Zinc Project in Algeria, its primary development asset. Site works accelerated during the June quarter, focusing on access construction to key underground portals and magazine areas, alongside ongoing geotechnical drilling to support final mine infrastructure design. These efforts are being carried out in partnership with Algerian government-owned entities holding the majority stake in the project.

Critical infrastructure developments are progressing well, including the construction of high voltage electricity lines by Sonelgaz, a new access bridge over a major local road, and a dedicated motorway interchange to serve the mine. These public works underscore strong government backing, further highlighted by the recent establishment of a dedicated Ministry of Mines and Mining Industries, signalling enhanced focus on mining sector growth under Minister Mourad Hanifi.

Negotiations with a state-owned Algerian bank for long-term project financing are advanced and expected to conclude imminently, a vital step for Terramin’s capital-intensive development plans. The company holds a 49% stake in the Bejaia Zinc & Lead joint venture operating Tala Hamza, with the remainder owned by Algerian government bodies.

Bird in Hand Gold Project Status Uncertain Post-Court Decision

The Bird in Hand Gold Project in South Australia remains in a holding pattern following the March 2026 South Australian Court of Appeal decision that restored the deposit to Exploration Licence 6447 held by Terramin Exploration Pty Ltd. This ruling overturned a previous mining reservation, effectively returning control to Terramin and prompting a strategic review of the project’s future.

Previously, a 2020 feasibility study projected a robust post-tax NPV8 of A$141 million and an IRR of 80.5%, with expected annual gold production of approximately 44,700 ounces at competitive cash costs. Despite these promising metrics, Terramin has not announced any immediate development moves, instead focusing on evaluating options amid regulatory and market considerations.

Kapunda ISR Trial Shows Progress with Enhanced Recovery Techniques

At the Kapunda In Situ Copper Recovery Project, Terramin holds a 25% free-carried interest while Environmental Copper Recovery (ECR) operates and funds the project. The ongoing ISR trial, initiated in late 2025, has seen incremental improvements in copper, cobalt, and nickel recovery rates. ECR is now testing additional methods to accelerate mineral dissolution, aiming to boost overall project viability.

Geophysical surveys and hyperspectral core analyses have been completed, with results pending. These data will inform the selection of a second test site to validate flow rates and copper grades, building on positive outcomes from the initial trial area.

South Gawler Ranges Exploration Drilling Finds No Significant Mineralisation

Exploration at the South Gawler Ranges Project, operated under a farm-in agreement with JOGMEC, saw the completion of a deep diamond drill hole to 850 metres targeting IOCG-style mineralisation. The hole failed to intersect significant mineralisation, leading to a reassessment of exploration plans. JOGMEC funded all activities during this stage of the earn-in agreement.

Financial Position Tight but Supported by Loan Facility Extension

Terramin’s cash position remains constrained, with a closing balance of just A$0.1 million and an additional A$0.7 million available for drawdown under existing loan facilities. Major shareholder Asipac Group Pty Ltd has extended the term of its loan facilities to 30 June 2027, providing short-term liquidity support as the company pursues long-term financing options.

The company continues discussions with potential financiers and investors, reflecting ongoing efforts to secure funding necessary to advance its development pipeline. Operating cash outflows remain significant, driven primarily by exploration and corporate costs.

Notably, Terramin maintains an unsecured US$6.68 million convertible note due in January 2027, which carries a 2.5% annual interest rate and may convert to equity after the lock-in period.

Environmental and Safety Compliance Maintained

During the quarter, Terramin reported no recordable injuries or environmental non-compliance incidents across its operations. This steady performance supports ongoing project development and exploration activities without regulatory interruptions.