Terramin Australia scores finance for gold project acquisition

THE BOURSE WHISPERER: Terramin Australia (ASX: TZN) and its subsidiary, Terramin Exploration Pty Ltd, have executed a committed letter of offer for the provision of $1.8 million debt facility by its major shareholder, the Asipac Group.

The funds are to be used by Terramin purchase the Bird-in-Hand gold project from Maximus Resources (ASX: MXR) and to fund studies on the development of the project.

The short term facility has been provided for a term of 18 months from first drawdown on commercial arm’s length terms including an interest rate of 7 per cent per annum (payable in cash or Terramin shares subject to the provisions of the ASX Listing Rules and the Corporations Act).

“The provision of the loan facility means that Terramin has satisfied the financing condition for the acquisition of the Bird-in-Hand gold project,” Terramin Australia said in its ASX announcement.

“Subject to the satisfaction of standard conditions precedent, the transaction is expected to complete at the end of the current quarter.”

The Bird-in-Hand gold project is located approximately 30 kilometres north of Terramin’s existing mining and processing facilities at the Angas zinc mine.

The project has a high-grade Resource of 598,000 tonnes at 12.3 grams per tonne for 237,000 ounces, which Terramin considers to be amenable to underground mining.

The company anticipates, subject to the required regulatory approvals, the Bird–in-Hand ore will be processed utilising the facilities at Angas, which Terramin explained can be modified to process gold ore.

The existing tailings dam at Angas has the capacity to hold all the Bird-in-Hand tailings Terramin believes that processing of Bird-in-Hand’s high grade ore utilising the existing Angas facilities will create a low capital and low cost gold operation.