South Australian miner Terramin to raise $14m for debt deals TERRAMIN Australia will raise $14 million from shareholders and transfer part of its existing debt to a major investor as part of a "significant financial restructure." The owner of the mothballed Angas zinc and lead mine, near Strathalbyn in South Australia, resumed trading after discussions with its financier Investec Bank Australia about restructuring its $10.5 million debt, which was due at the end of last month. Key elements of the restructure include 33.7 per cent shareholder Asipac acquiring $4 million of Terramin's outstanding debt and Investec agreeing to a deferred payment of the balance by December 20 this year. Terramin's non-renounceable offer, underwritten by Asipac, is one share for every two held at 3.5c each - a 19 per cent discount to its closing price of 4.3c on September 30. The funds raised will be used to repay $2 million to Asipac and clear Investec's debt and advance the company's Bird-in-Hand gold project in the Adelaide Hills and Tala Hamza project in Algeria, which has stalled over disagreeements with other stakeholders. The remaining $2 million will be paid to Asipac by September 2015, subject to conditions. Investec has also agreed to extend a $2.5 million short-term debt facility to October 15, which will be novated to Asipac. Investec has also extended its $5.3 million guarantee facility to support rehabilitation obligations related to the Angas mine to March 2015. All debt owed to Asipac will be secured under a Security Trust Deed held by Investec - an arrangement that has received a waiver under the sharemarket's listing rules so that it does not need shareholder approval. In a statement, Terramin chairman Michael Kennedy said the board is pleased with the continued support of its major shareholder and financier while chief executive Martin Janes - appointed in June this year - said the capital-raising will provide adequate near-term funding. In May the company spoke of significant challenges, inclduing the underperformance of its mine, significant debt creating uncertainty and the stalled project in Algeria. Both were unavailable for further comment due to the Labour Day public holiday in South Australia. Shares were trading 5 per cent lower at 4.1c at 11.30 AEST.