New Talisman Gold Shelves Plans For Now

Posted by on 07/04/2014

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New Talisman Gold Mines (NTL) announced late last week that it has temporarily shelved plans to resurrect its Talisman gold project at Karangahake. The company has been unable to reach a satisfactory commercial agreement with Chinese company St Albans. The Chinese group was to have invested capital to re-open the historic Talisman mine but after NTL received a letter from the Langfang Group (associated with St Albans) proposing that Langfang would provide at its cost, technical, engineering and specialist ore extraction and treatment services in exchange for a percentage of the project the company declined to proceed.

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.

NTL considered that this proposal in the form provided was not acceptable and are negotiating an alternative financing arrangement for the Talisman project. The company 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.”

New Talisman holds a mining permit within the original Talisman underground mine and an adjacent exploration permit along strike from the mine. It holds shares in Broken Hill Prospecting Limited which is planning to develop its cobalt project near Broken Hill in Australia. Coromandel Gold Limited, its wholly owned subsidiary has an exploration permit for gold near Waihi and an exploration permit application for gold and base metals in Northland.