Appian, Altamin in $94m funding deal

Global private equity fund Appian has agreed to invest up to $94 million in the Gorno project by South Perth-based mining company Altamin.

The parties have agreed to establish an incorporated joint venture company to operate and fund the Gorno Zinc project in northern Italy, which Altamin owns.

Altamin announced on the ASX last week that Appian agreed to invest up to US $65 million, roughly converted to AUD $94 million, to earn up to 67.4 per cent interest in Gorno.

Appian will commit AUD $14.5 million initially for significantly expanded exploration, to earn up to 29.9 per cent interest in the joint venture.

Following a final investment decision, Appian has the right to fund up to a further AUD $79.6 million for project construction to earn up to 37.5 per cent interest.

According to the ASX announcement, Altamin and Appian will share management of Gorno prior to a final investment decision, with Altamin anticipating to retain a 32.6 per cent interest in Gorno once the project has been funded.

“Altamin will maintain full ownership and development control of its other base and battery metal projects in Italy,” the announcement said.

“Appian’s investment in Gorno significantly de-risks the finance of further exploration growth and project funding of the Gorno Project through to commercial production, whilst removing any immediate financing burden of the project from Altamin’s shareholders.”

Altamin managing director Geraint Harris said the partnership with Appian would bring a wealth of new exploration and mine development experience to the team.

“This funding enables our work program to be significantly expanded to test the significant near mine exploration potential and expand the resource footprint at Gorno, therefore maximising project and shareholder value, whilst significantly reducing equity dilution and finance risk for our shareholders,” he said.

“Attracting a world class partner such as Appian to invest in one of Altamin’s projects is testament to the hard work of the Altamin team and the quality of the Gorno Project, while also highlighting Italy as a Tier 1 jurisdiction for mining investment.”

Appian is a European headquartered specialist mining private equity fund and have brought seven mines to commercial production in the past four years.

Its founder and chief executive Michael W. Scherb said the company was excited to partner up on the development of Gorno, describing it as a ‘high-quality asset with a highly prospective resource and strong local support”.

“The work of the Altamin team to date is a credit to themselves, and we look forward to working with them, the surrounding communities, and all other stakeholders to successfully advance the project,” he said.

Lisle Group and Gilbert + Tobin are advising Altamin on the deal.