Terramin’s $28.65 million raise clears a funding hurdle for Tala Hamza

$28.65 Million Raise Replenishes Terramin’s Cash Position

Terramin Australia Limited (ASX:TZN) has secured the full $28.65 million targeted under its entitlement offer, a critical funding event for a company that held just $188,000 in cash at 30 September. The proceeds were received after quarter-end and therefore do not appear in the September cash balance, but are intended primarily to support the development of the 49%-owned Tala Hamza Zinc Project in Algeria.

“Tala Hamza Project Location and Infrastructure”

The result completes the $28.65 million entitlement offer launched in September at 1.8 cents a share on a one-for-1.5 basis. Asipac Group received 769.3 million shares under its underwriting and debt discharge arrangements, while Feny (Hong Kong) International Mining received 555.6 million shares under the shortfall underwriting. Asipac’s total holding rose to 47.15% of Terramin’s issued capital.

Tala Hamza Infrastructure Moves Ahead

“Construction of the access bridge over RN75.”

Tala Hamza remains the centre of gravity for Terramin. During the quarter, work continued around the mine portal and site magazine, ventilation-shaft geotechnical drilling and supporting infrastructure. A high-voltage power connection built by state-owned Sonelgaz was nearing completion, as was a motorway interchange for the project. An access bridge over the RN75 road was also under construction.

The joint venture partners are progressing tenders for the underground mine and access road, while negotiations for long-term project finance with an Algerian state-owned bank continued during September. Terramin’s quarterly expenditure on Tala Hamza was approximately $50,000, with the broader project costs funded by the joint venture partners. The activity represents another step in the Tala Hamza development push, but neither the construction tenders nor project financing has yet been completed.

Kapunda Trial Produces Stronger Copper Signal

At the 25%-owned Kapunda In Situ Copper Recovery Project, the addition of ferric chloride oxidant produced a rapid increase in dissolved copper to 180 parts per million, with cobalt, nickel and zinc also rising. Terramin said the result demonstrates that copper dissolution observed in laboratory column-leach testing can be replicated in the field.

That is an encouraging technical result, but it remains a trial outcome rather than evidence of commercial viability. The joint venture is now compiling pXRF, QEMSCAN, hyperspectral and electroseismic data to update its geological and hydrogeological models before proceeding to economic analysis. No expenditure was recorded by Terramin on Kapunda during the quarter.

Liquidity Improves, But Debt Milestones Remain

Before the entitlement proceeds arrived, Terramin generated negative operating cash flow of $633,000 and spent a further $82,000 on exploration and evaluation. Cash plus undrawn facilities totalled $663,000, equivalent to an estimated 0.92 quarters of funding based on the quarter’s relevant outgoings. The company said it expects to continue operating and is considering additional financing options.

Terramin’s financing burden remains material. Asipac-related loan facilities totalled $32.68 million at quarter-end, with $475,000 undrawn, while a US$6.68 million convertible note is due for repayment or conversion on 3 January 2027. The unsecured standby facility from Asipac was increased to $5.5 million during the quarter, extending the company’s near-term support, but the capital raise will need to be assessed alongside those debt obligations rather than in isolation.

Bird in Hand remains in review after the March 2026 South Australian Court of Appeal decision returned the deposit to an exploration licence, while the Angas Zinc Mine stays on care and maintenance. The next material tests are likely to be whether Tala Hamza’s financing and tender processes convert into binding commitments, how the new capital is deployed, and whether Kapunda’s higher copper recoveries can support a credible economic case.