Australian junior Terramin announced that it has raised AUD 77 million of loan facilities to complete the financing for its Angas zinc mine project in South Australia. The mine, scheduled to start production in Q3 of 2008 will produce around 30,000 tonnes per year of zinc at full output.

Terramin said it has entered into senior loan agreements covering AUD 67 million with Investec Bank and BOS International and a subordinated loan facility with Sempra Metals Investments for AUD 10 million. Sempra has an off take agreement in place for Angas production of concentrates. The two banks have also provided hedging services to support Terramins anticipated hedging requirements.

Dr Kevin Moriarty Terramins executive chairman said while the initial capital cost of the Angas Zinc development remains at AUD 64 million, the loan facilities have been conservatively structured to cover environmental bonds working capital costs and contingencies to allow for any cost overruns on the project.