Key Highlights

  • Altamin Ltd (ASX:AZI) shares were priced at $0.028 during the 20 October 2026 session, a gain of 12.00%.
  • The company announced on 6 August 2026 an unsecured A$2,000,000 Cash Advance Facility with Vilo Finance Pty. Limited, an entity controlled by major Shareholder Victor Smorgon Group.
  • The facility carries 12% per annum interest, a 1% establishment fee and a repayment date 12 months after first drawdown.

During the Trading session on 20 October 2026, Altamin Ltd (ASX:AZI) shares were priced at $0.028, a gain of 12.00%. The company's latest announcement, dated 6 August 2026, detailed a new unsecured A$2,000,000 cash advance facility arranged with an entity controlled by its major shareholder, Victor Smorgon Group (VSG), to support its Lazio and Gorno Projects and general working capital.

Company Background

Altamin Limited is an ASX-listed company whose announcements centre on two projects, the Lazio Project and the Gorno Project, both in Italy. The Lazio Project relates to land and tenure in the Cesano geothermal area, where the company has said it envisages locating a proposed processing plant and logistics infrastructure. Earlier public reporting described Altamin's Cesano licence applications as prospective for lithium in geothermal brines, near Rome. The Gorno Project has been reported as a zinc, lead and silver project in Italy.

Victor Smorgon Group is described by the company as its major shareholder and a longstanding supporter. The company's chief executive is Geraint Harris.

The Cash Advance Facility

Under the agreement, Vilo Finance Pty. Limited will provide Altamin with an Unsecured Loan of A$2,000,000, with an option for the parties to agree to increase the amount by up to A$1,000,000 on the same terms. The company said the facility is a non-dilutive funding source that supplements its cash balance of A$2.39 million as of 30 June 2026.

The stated purpose is to support the advancement and maintenance of the Lazio and Gorno Projects, together with general corporate purposes and working capital. The company said the facility will specifically provide Balance Sheet support for securing long term access and surface rights in the Cesano geothermal area.

Altamin said the facility was negotiated on arm's-length terms and approved by the board, excluding Mr Peter Edwards, the VSG nominee director.

Key Commercial Terms

The repayment date is 12 months after the first drawdown. Altamin may draw down once per calendar month, at least A$100,000 each time, and may prepay all or part of the outstanding principal at no premium or break cost. Prepaid or repaid amounts cannot be redrawn.

Interest accrues at 12% per annum on the outstanding principal. An establishment fee of 1% of the initial facility amount is payable on the first drawdown, and an undrawn commitment fee of 4% per annum applies to the undrawn portion during the availability period. Interest and fees are payable in arrears at the end of each calendar quarter but are capitalised and added to the principal outstanding. A default rate of 15% per annum applies to amounts due and unpaid.

If Altamin conducts an entitlement offer during the term, it must apply the net proceeds to repaying the outstanding principal. Events of default include non-payment not remedied within three Business days, Insolvency events and uncured breaches, and the lender may then cancel the facility or declare amounts immediately due.

Sector Backdrop

Altamin's two projects touch different commodities. For zinc, Cochilco data reported by Reporte Minero showed the LME price closing at US$4,107 per tonne on 27 August 2026, the highest since mid-2022 and about 55% above a low near US$2,650 in mid-2025. The report said LME zinc stocks had fallen to about 95,000 tonnes, the lowest since April 2023.

For lithium, Cochilco-based reporting put lithium carbonate (99.5%, free on board South America) at US$19.75 per kilogram in mid-August 2026. The company describes the Lazio Project as still at scoping study stage.

Risks Shareholders Should Weigh

The announcement itself sets out several financial considerations. The facility bears 12% interest plus fees, all capitalised into the principal, so the amount owed grows while the loan is outstanding. It must be repaid in full within 12 months of first drawdown, and the company is required to direct net proceeds of any entitlement offer to repayment. The company's disclosed cash balance was A$2.39 million at 30 June 2026.

The facility is provided by an entity controlled by the major shareholder, and the board approved it without the VSG nominee director.

The company noted that further drilling at Lazio assumes a positive permitting assessment and decision. Projects at the scoping stage depend on land access, tenure, permits and technical studies. Commodity prices, including zinc and lithium, also change over time and affect the sector generally.

What's Next

Altamin said finalising the Scoping Study for the Lazio Project is the key next step, which it said will give Stakeholders an assessment of the project's potential value. The company also intends to negotiate an extension of tenure at Lazio in parallel with the study.

The company said securing those rights would provide a commitment to the next stages of development, including drilling, assuming a positive permitting assessment and decision. No dates for the study or the land arrangements were given in the announcement.