New Talisman Gold Mines pulls out of deal

Last updated 17:17 04/04/2014

Relevant offers


Charges laid in US over India-based phone scam won't stem tide for Kiwis - NetSafe Friends-themed cafe in Singapore causes outrage with $1000 membership The young Kiwis making millions Edendale milk silo collapse cost set to hit $45 million - Mercer Money tool for the blind released by Reserve Bank Software from failed firm Wynyard underpins sex offender register and major police investigations The Warehouse swings pose risk of 'serious injury' Qantas ratchets up excess baggage fees by 75 per cent Instagram star Kayla Itsines is worth a whopping A$46 million Police vetting checks criticised by privacy commissioner

Junior explorer New Talisman Gold Mines has pulled out of a deal which would have allowed Chinese investors to finance the reopening of its Talisman Mine near Waihi.

In December, New Talisman (NTL) signed a heads of agreement with St Albans, a special-purpose vehicle for the Langfang Group.

Under the deal, the group would inject $10.9 million into NTL in return for 65 per cent after costs of all the gold and silver extracted from the mine's pre-feasibility reserves.

Executive director Matthew Hill said St Albans was unable to do on-site due diligence within the agreement's time frame and although discussions continued in good faith, talks began to move away from direct investment in NTL.

"It just wasn't going to give our investors the kind of certainty of funding we needed," he said.

NTL also turned down a proposal from the Langfang Group to send its own people in to extract the ore in exchange for a percentage of the project.

Hill said NTL was negotiating an alternative financing arrangement and hoped to update shareholders within weeks.

"We have made excellent progress towards reopening the Talisman Mine and we are still on track to enter and upgrade access in preparation for gold production," he said.

Shares in NTL have fallen from 2.2 cents to 1.2c per share in the last year.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content