New Talisman Gold Mines pulls out of deal

CATHERINE HARRIS
Last updated 17:17 04/04/2014

Relevant offers

Industries

Spark seeks injunction to prevent Sky/Vodafone 'fait accompli' 'Spy doll' pulled from shelves in Germany Beauty salon fined after using banned substance to apply acrylic nails Oxford professor sees entrepreneurship and science hand-in-hand Mondelez's global $4 billion cost-cutting drive behind Dunedin Cadbury factory closure Government is 'wasting money' on oil companies who have already ditched NZ - Green MP Whittaker's won't step into the Dunedin chocolate void left by Cadbury New Zealand directors worried by everyday risks Workplace leaders need to be better prepared for jobs disruption Shortage of retail and restaurant workers becoming acute

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