Altamin has completed its Joint Venture Agreement and transferred the Gorno Zinc Project to Vedra Metals SRL – a joint- venture company owned by Altamin via its wholly owned subsidiary, Energia Minerals and global specialist mining private equity fund Appian Capital Advisory.

Gorno is a previously producing high-grade, underground mine located in a historic zinc and lead mining province in Italy which has been idle since 1982.

The current resource of 7.8 million tonnes grading 6.8% zinc, 1.8% lead and 32 grams per tonne silver underpins the Scoping Study which provides estimates of a post-tax net present value (NPV) of US$211m and post-tax internal rate of return (IRR) of US$50m – both measures of a project’s expected profitability.

Initial Capex was estimated at a very manageable US$114m with payback estimated within 2.5 years and a mine life of nine years. All-in sustaining costs are estimated at US$0.60c per pound of zinc equivalent.

A significant milestone for Gorno’s development

“I am delighted to close this funding with Appian for such an exciting growth and development strategy, with drilling and permitting activities having already started at Gorno,” Altamin (ASX:AZI) MD Geraint Harris said.

“This funding demonstrates that Appian shares our conviction that Gorno is a potentially world class deposit with every chance of becoming a new mine.

“Our partnership with Appian brings their focus to a new and prospective area of Western Europe and enhances our team’s project development skills with Appian’s project construction and operational skill-set, whilst significantly reducing equity dilution and finance risk for our shareholders.

“We also look forward to the drilling news flow restarting in the new year.”

Appian founder and CEO Michael Scherb said the company looks forward to working with the Altamin and Vedra team to progress the development of the asset and bring Gorno into production.

Appian now holds 9.96% of Vedra

Appian has now paid an initial ~$3.8m (US$2.6m) to earn an initial interest of approximately 9.96% in Vedra.

And all applicable conditions precedent relating to the remaining first tranche funding have been satisfied or waived, such that the remaining ~$10.9m (US$7.4m) committed may be drawn by Vedra when required.

Appian will earn up to an approximately 29.9% interest in Vedra as the remaining first tranche funding is drawn.

First tranche to fund Gorno drilling

Altamin says this first tranche of funding will be used solely to significantly expand the drilling at Gorno through a campaign for 19,000m, complete all permitting, conduct a DFS and build the in-country team in preparation for a final investment decision (FID).

The drilling program will comprise both infill and step-out drilling, as well as commence initial exploration of the further geological potential at Gorno.

In the event Vedra’s equity funding requirements prior to FID exceed the US$10 million of committed first tranche funding, each of EMI and Appian have the right under the Joint Venture Agreement to fund any additional amounts pro-rata to their interest in Vedra at the same valuation.

And following a FID, Appian has the right to acquire up to a further 37.5% in Vedra by funding all cash requirements of Vedra between the FID and the project completion date (the Development Phase), up to a further $80.9m (US$55m).

Each of EMI and Appian have the right to fund any additional amounts pro-rata to their interest in Vedra to the extent that Vedra’s Development Phase equity funding requirements exceed US$55m.




This article was developed in collaboration with Altamin Limited, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.