The Italian Job: Altamin shareholders drive critical metal plan with multi-million dollar raise
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Shareholders have demonstrated their support for Altamin by taking up the majority of shares on offer under the company’s two for five entitlement offer.
Shareholders have snapped up 98,480,408 new shares worth a total of more than $6.059m before costs, or about 85% of the $6.98m worth of shares on offer.
Altamin (ASX:AZI) directors have also taken up the full share of their entitlements with Non-Executive Chairman, Alexander Burns and Non-Executive Director, Marcello Cardaci snapping up $988,754 worth of shares, while Managing Director, Geraint Harris has taken up his $160,551 entitlement.
Subject to shareholder approval, Harris has also committed to take up an additional $170,688 worth of shares under the shortfall facility.
The Victor Smorgon Group – Altamin’s largest shareholder – has taken up its full entitlement and additional shares under the shortfall facility to take its shareholding up to 19.9% of the company.
About 15.3 million shares priced at 6c remain as shortfall under the offer, though the company’s directors have no current intention to exercise their right to place the shortfall shares at their discretion within three months of the offer closing.
Proceeds from the entitlement offer will be used to help advance Gorno to a definitive feasibility level and conduct further diamond drilling with the aim of de-risking and expanding the existing resource of 7.8Mt grading 8.6% zinc+lead and 32 grams per tonne silver.
The company also expects to start exploration drilling at its Punta Corna project on receipt of drilling approvals, which are expected soon.
Gorno is a previously producing high-grade, underground mine in a historic zinc and lead mining province that has been idle since 1982.
It has a recently defined resource of 7.8 million tonnes grading 6.8% zinc, 1.8% lead and 32 grams per tonne silver that underpins a scoping study that outlines some very attractive numbers.
Project capex is estimated at US$114m (A$159.7m) with payback estimated within 2.5 years and a mine life of nine years while post-tax net present value and internal rate of return – both measures of a project’s expected profitability – have been estimated at US$211m (A$293.8m) and 50% respectively.
Punta Corna covers the Punta Corna and Balme exploration licences over the historical Usseglio cobalt mining area where historical bulk sampling reported an average diluted grade of between 0.6% cobalt and 0.7% cobalt over an average vein width of 2m.
It includes associated nickel, copper and silver credits that could almost double the in-situ cobalt equivalent grade.
This article was developed in collaboration with Altamin, 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.