Terramin Australia (ASX:TZN) has raised A$3 million via a share placement to two new investors citing a favourable outlook for zinc.
The placement will total about 16.6 million shares at $0.1803 per share.
Terramin shares last closed at $0.185, or 54% higher than four months ago.
The funds will be used towards advancing the company’s projects and for working capital.
The company is developing the Tala Hamza zinc project in Algeria, which holds a resource of 68.6 million tonnes at 4.6% zinc and 1.2% lead.
From an exploration perspective the Tala Hamza deposit continues to provide upside potential, particularly to the south where drilling showed the deposit was thicker and higher grade than expected. The deposit is currently open and untested in the south, while there also remains potential to the northeast and east.
Zinc on the London Metal Exchange lost 1.8% in value overnight to US$1,659 per tonne, which represents about a 27% decline since the same time last year.
The metal has struggled with weakness in Chinese imports in recent months but has enjoyed some positive sentiment on expectations of a tightening supply-demand scenario related to declining LME stocks and projected increases in Asian manufacturing.
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