Altamin Limited has locked in a $2 million unsecured loan facility from its major shareholder Victor Smorgon Group, providing non-dilutive funding to advance its Lazio and Gorno projects and shore up working capital.
- Unsecured $2 million loan from Victor Smorgon Group
- Facility supports Lazio and Gorno project development
- Non-dilutive funding preserves shareholder equity
- 12% annual interest with capitalised fees
- Next step: finalising Lazio Scoping Study
New Loan Facility Adds Financial Flexibility Without Dilution
Altamin Limited (ASX:AZI) has arranged an unsecured A$2 million Cash Advance Facility with its major shareholder, the Victor Smorgon Group (VSG), via Vilo Finance Pty. Limited. The facility includes an option to increase funding by up to A$1 million, providing Altamin with a non-dilutive source of capital to support its Italian lithium and polymetallic projects as well as general corporate needs.
This move supplements the company’s cash position of A$2.39 million as of 30 June 2026, offering a buffer to maintain momentum on key initiatives without resorting to equity raises that would dilute existing shareholders. The loan’s 12-month repayment term starts from the first drawdown, with an interest rate of 12% per annum and additional fees capitalised into the principal.
Funding Targeted at Critical Project Milestones
The facility’s proceeds are earmarked primarily for advancing the Lazio geothermal lithium project and the Gorno polymetallic project, including securing long-term access and surface rights in the Cesano geothermal area. These rights are crucial for the planned processing plant and logistics infrastructure, underpinning the next phases of development.
CEO Geraint Harris highlighted the strategic importance of the arrangement, noting the company’s fortunate position to leverage VSG’s support. He emphasised that the funding will enable Altamin to negotiate tenure extensions for the Lazio Project while finalising its Scoping Study; both vital steps in unlocking shareholder value and advancing the company’s long-term vision.
Loan Terms and Governance Safeguards
The loan includes a 1% establishment fee and a 4% undrawn commitment fee, both capitalised along with interest. Drawdowns can be made monthly in minimum increments of A$100,000. The company may prepay the loan without penalty and must apply net proceeds from any entitlement offers during the loan term toward repayment.
The facility was approved by Altamin’s board, excluding Peter Edwards, the VSG nominee director, ensuring arm’s-length negotiation despite the related-party nature of the transaction. The loan remains unsecured and governed under Western Australian law.
Upcoming Milestones to Watch
Altamin’s immediate focus is the completion of the Lazio Project Scoping Study, which will provide a clearer valuation and development pathway. Securing surface rights will reinforce confidence in the project’s viability and pave the way for drilling and permitting decisions, contingent on positive outcomes.
Bottom Line?
Altamin’s new shareholder-backed loan facility bolsters its project pipeline without diluting equity, but the company’s ability to convert these advances into value hinges on upcoming scoping and tenure milestones.
Questions in the middle?
- Will Altamin draw down the full $2 million facility or seek the additional $1 million extension?
- How will the final Scoping Study impact investor confidence and project financing options?
- What are the risks if tenure negotiations or permitting for the Lazio Project encounter delays?