- Altamin (AZI) will receive up to US$65 million (A$94 million) from global specialist mining private equity fund Appian for the Gorno zinc project in Italy
- Under the agreement, both companies will create an incorporated joint venture (JV) to operate the development and management of Gorno
- The company is expected to keep a 32.6 per cent interest in Gorno once the project has been funded to commercial production based on the scoping study parameters
- Altamin will retain its $4.83 million cash balance along with full ownership and autonomy of its other strategic battery metals projects
- Shares in the company were down 1.04 per cent, trading at 9.5 cents as of 12:20 pm AEST
Altamin (AZI) will receive up to US$65 million (A$94 million) from global specialist mining private equity fund Appian to secure the Gorno zinc project in Italy.
Under the agreement, both companies have agreed to establish an incorporated joint venture (JV) to operate the development and management of Gorno which include expanded exploration and infill drilling in excess of 20,000 metres.
The investment consists of the first tranche of US$10 million committed funding which includes the completion of a definitive feasibility study (DFS) which Appian will earn up to 29.9 per cent.
It also includes the right to fund up to a further US$55 million for project construction following a final investment decision (FID) with Appian will earn up to 37.5 per cent interest.
The company is expected to retain a 32.6 per cent interest in Gorno once the project has been funded to commercial production based on the scoping study parameters.
Altamin Managing Director Geraint Harris said the funding will enable the company’s work program to significantly expand into testing significant near mine exploration potential and also expand the resource footprint at Gorno.
“[This will] therefore maximise project and shareholder value, whilst significantly reducing equity dilution and finance risk for our shareholders.
“Altamin and Appian are aligned on this strategy and the partnership with Appian also brings a wealth of new exploration and mine development experience to our team.
“Attracting a world class partner such as Appian to invest in one of Altamin’s projects is testament to the hard work of the Altamin team and the quality of the Gorno Project, while also highlighting Italy as a Tier 1 jurisdiction for mining investment.”
Altamin will retain its $4.83 million cash balance along with full ownership and autonomy of its other strategic battery metals projects.
On a different note, the Altamin directors have recommended all shareholders to reject the impeding VBS offer takeover offer, saying that it is “neither fair nor reasonable”.
Shares in Altamin were down 1.04 per cent, trading at 9.5 cents as of 12:20 pm AEST.