New Talisman Gold Mines announced today that it has been unable to reach a satisfactory commercial agreement with St Albans.
A Heads of Agreement (HoA) was signed by NTL in December 2013 with St Albans who were unable to commence on-site due diligence within the timeframe set out in the HoA. Despite the lapsed HoA both parties had continued discussions in good faith. Ultimately the NTL directors have decided that these discussions did not reflect the offer of direct investment into NTL on the basis set out in the HoA and have declined to proceed.
NTL has subsequently received a letter of intent from the Langfang Group proposing an earn-in arrangement whereby Langfang would provide at its cost, technical, engineering and specialist ore extraction and treatment services in exchange for a percentage of the project. NTL considered that this proposal in the form provided was not acceptable.
NTL is currently at an advanced stage of negotiating an alternative financing arrangement for the Talisman project and expects to be in a position to update shareholders in the coming weeks.
Executive Director Matthew Hill said, “With alternative financing options open to NTL the board felt that the options presented during negotiations were not in the best interests of New Talisman shareholders. 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.”