Zinc and gold play Terramin Australia is a step closer to mining at its Tala Hamza project in Algeria after raising $8 million.

The money will go towards lodging a mining lease application for Tala Hamza and its Bird-in-Hand gold project in South Australia.

Terramin’s (ASX:TZN) chief executive Martin Janes said the investment comes at a time when the company was getting closer to approval of its world class Tala Hamza zinc project and sustained higher prices for zinc.

“This funding also places Terramin in a strong position to move to a mining lease approval phase for the Bird-in-Hand high-grade gold project,” he said.

The placement will include the issue of 47.6 million shares at 16.8 cents per share — a premium to Wednesday’s closing price of 17c.

It will be completed in two tranches in the next two weeks with the first tranche already completed and 37.5 million shares issued to new investors raising $6.3 million.

The second tranche is expected to be completed by October 5 with the issue of 10.1 million shares to an investment fund to raise $1.7 million.

“This placement continues to demonstrate Terramin’s ability to access strong investor support as required,” Janes said.

Terramin’s market cap is about $300 million.