Mine gets Chinese backing

01:55, Dec 13 2013

Dual-listed junior mining firm New Talisman Gold Mines says it has Chinese backing to kickstart its mining project near Waihi.

New Talisman, formerly Heritage Gold, has signed a heads of agreement with St Albans Pty Ltd, a special purpose vehicle set up by undisclosed Chinese investors to fund a feasibility exercise at the Talisman mine.

The Chinese will inject $10.9 million in return for 65 per cent after costs of all the gold and silver extracted from the pre-feasibility reserves.

The deal is subject to due diligence and New Talisman shareholder approval.

New Talisman's shares were up 36 per cent to 1.5c in mid-afternoon trading.

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