All Stock Exchange Reports
Stock exchange reports
Update on Chinese Investor Group
- Formal extension requested by Chinese investment group
- Desktop due diligence and audits by investor group now complete
- Senior executives to commence site visit on 10th February
- Technical team comprising a party specialists and container of equipment due in NZ by mid February.
New Talisman Gold Mines announced today that is has received a formal letter of request for an extension to the signed Heads of Agreement (HOA) with St Albans Pty Ltd dated 12th December 2013. The formal request is for a period of 90 days from the date of the signed agreement to allow completion of definitive agreements and technical due diligence.
The Terms of the HOA provide for the full funding requirements set out in the Talisman Mine Pre- Feasibility Study dated 30 March 2013 of NZ $10.9M, in return for 65% of the 32,200 ounces of Gold (20,930 oz Au) catered for in the study.
The letter received confirms that representatives from St Albans and beneficial shareholder Langfan Dashan Geology & Mining Co Ltd, of Hebei China, (“Langfan”) will visit the New Zealand Mine for further on ground due diligence and laboratory testing.
St Albans have advised that due diligence is now complete on the technical data provided and have proceeded with the transportation of a container of equipment and specialist chemicals from China for the completion of test work by their technical team. It is expected that the technical team should have completed their test work by the end of February.
Emerald Resources (Asia) Limited, New Talisman’s advisors in conjunction with St Albans, have set out the timeline for completion of draft definitive agreements by the 31st January and have completed the proposed timing of the site visit.
The visit is scheduled for the 10th – 14th February for the senior executives of the group and will be followed shortly thereafter by the technical team.
The group’s senior management team will complete a site visit to the Talisman mine and meet with NTL board members and senior management to finalise commercial negotiations at that time.
Executive Director Matthew Hill said “We are working hard with our potential partners in finalising the due diligence. The positive progress with our potential partners highlights the quality of the project at Talisman where high grades allow for considerable flexibility as compared to many junior gold mining companies. The company continues to complete the precursor work to our bulk sampling/trial mining phase at Talisman and we are on schedule for commencement of the project during the second half of 2014.”
New Talisman Completes Sale of Shares
- Sale of balance of Armadale Capital PLC (ACP) shares nets NZ$417,927
- Net return on capital invested in February 2013 of 38%
New Talisman Gold Mines announced today it has completed its program to sell down the Armadale Capital PLC (ACP) shares issued following the acquisition by ACP of NTL’s interests in the Mpokoto Gold Project.
Following the acquisition late last year of NTL’s interests in Mpokoto by Armadale Capital PLC, a UK listed entity, NTL received 93 Million ACP shares. NTL has now completed the sale of its shares in ACP netting a total of NZ$417,927. This represents a return on capital invested by NTL in February last year of 38%
Executive Director Matthew Hill said “New Talisman is pleased to have exited this investment on such satisfactory terms. The funds from the sale of the shares in ACP will be applied to the company’s Talisman project which received resource consents for proceeding with the Bulk Sampling phase of the project late last year.”
Heads of Agreement Signed with Chinese Investor Group
- Special Purpose Vehicle set up by Chinese investor group for purposes of funding Talisman Mine Development
- Heads of Agreement provides for investor group to :
o Invest NZ$10.9M in development and operation of Talisman gold mine on basis set out in Pre-Feasibility study
o Earn right to 65% of gold and silver produced (after costs) from reserve identified in Pre-Feasibiity study .
o To establish at its cost gold processing and treatment plant and to treat Talisman ore on competitive terms
o To fund potential future joint ventures with NTL
New Talisman Gold Mines announced today that is has signed a Heads of Agreement (HOA) with St Albans Pty Ltd, a Special Purpose Vehicle (SPV) set up by a Chinese investor group (the Investor), which contemplates the investment of NZ$10.9m to fund the Talisman Mine development project, subject to completion of satisfactory due diligence, entering into definitive binding agreements and NTL shareholder approval.
The Terms of the HOA cover the funding requirements of NZ$10.9m set out in the Talisman mine Pre-Feasibility study dated 30 March 2013 in return for 65% of the physical gold and silver produced (after costs) from the reserves identified in the Pre-Feasibility study. It also provides for the investor to bring to the project specialist gold extraction capabilities and plant and equipment which are intended to be set up near the Talisman site for the processing of ore. In addition to these terms the HOA provides the incoming investor with first option to fund any future expansion at the Talisman Permit Area.
During due diligence the Investor will visit the Talisman mine site with a group of metallurgical and gold extraction specialists. This site visit is planned for the coming weeks and will enable the parties to finalise the commercial terms of the agreement.
Executive Director Matthew Hill said, “Following our board’s strategic decision to seek a funding partner our advisors, Emerald Resources (Asia) Limited, set out in October to secure a potential project partner. We welcome the opportunity to work with St Albans and its ultimate parent company in developing this project. Through the proposed funding structure existing shareholders are not diluted and retain 100% title to the Talisman Mine and full rights to the ore once production from the Pre-Feasibility ore reserves is complete. Having a strong partner allows New Talisman to accelerate its path to production and to strengthen its ability to develop its other highly prospective tenements including Rahu, Golden Valley and Northland.”
The ability to accelerate the development of the Talisman mine project presents a significant opportunity to both parties to benefit from this historically important mine in the most commercially productive gold region in New Zealand.
The Gold Pyramid by Hauraki Gold Mining Company Limited
“We intend to work closely with our potential partners over the next 30 days and to assist them in the completion of due diligence in order to enter into a formal commercial arrangement in the timeline agreed today. We look forward to being in a position to update the shareholders in the coming weeks,” Hill says.
Following the recent grant of its Resource Consents and Access Arrangement over its Mining Permit, NTL intends in the near future to undertake a metallurgical sampling program to recover bulk ore samples from the resources targeted for early mining. This will allow for the detailed test work required to support the design of a processing facility provided for in the HOA.
Download SX Release 13 December 2013 Heads of Agreement Signed with Chinese Investor Group