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Terramin to raise A$14m in entitlement offer, restructures debt

7th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior Terramin Australia has announced a financial restructure to advance its newly acquired Bird-in-Hand gold project, in South Australia, and the Tala Hamza base metals project, in Algeria.

The miner reported on Monday that it would raise A$14.1-million in an one-for-two entitlement offer at A$0.035 a share. The offer price represented a 19% discount to the closing price of Terramin shares on September 30.

Shareholder Asipac Group has agreed to fully underwrite the offer.

Terramin would also restructure its A$10.5-million debt facility, which was due for repayment at the end of September. Asipac would acquire A$4-million of the outstanding Investec debt, of which A$2-million would be repaid upon completing the entitlement offer. The remaining A$2-million would be paid by the end of September 2015, subject to certain conditions.

Investec has agreed to defer repayments of the balance of the debt facility to December 20, with this debt to be repaid by funds raised under the entitlement offer.

Terramin also extended a A$2.5-million short-term facility with Investec to October 15, and extended the A$5.3-million guarantee facility, which supports the rehabilitation obligations of the Angas zinc mine, until the end of March 2015.

“The capital raising initiative will provide the company with adequate near-term funding to repay debts, to advance the Bird-in-Hand and Tala Hamza projects, and to pursue other corporate opportunities,” said CEO Martin Janes.

Terramin acquired the Bird-in-Hand gold project from Maximus Resources in August, for A$3.5-million in cash and 25-million shares. Terramin is also the joint owner of the Tala Hamza multi-metals project, which has the potential to produce some four-million tonnes a year of product.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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