Its On
ANNOUNCEMENT BY NEW TALISMAN GOLDMINES LIMITED
[ASX, NZSX: NTL]
FOR IMMEDIATE RELEASE
RIGHTS ISSUE
New Talisman Gold Mines Ltd (ASX, NZSX : NTL) is pleased to announce that it
will provide eligible shareholders the opportunity to participate in a
pro-rata renounceable rights issue of new NTL shares (New Shares) at an issue
price of NZ$0.005 or AU$0.005 per New Share to raise up to approximately
NZ$12.265 million (Offer).
The Offer price represents a significant discount to the closing price on the
NZX as at 16th May 2016 of 1.5 cents. This provides existing shareholders
with a very attractive opportunity to participate in the growth of the
company at a time when the gold price is firming and sits currently around
approximately 1900 NZD per ounce.
The Company intends utilising the funds raised through this offer and current
cash reserves as follows:
1) Initiating the bulk sampling programme and associated works immediately
following completion of the raise
2) Accelerating the bulk sampling programme to maximise ore extraction within
the terms of the granted resource consents which allow for up to 20,000 cubic
metres per annum. This will be determined through detailed analysis of the
updated prefeasibility study and project plan currently being undertaken.
3) Accelerating the transition from bulk sampling to Phase 1 of the longer
term production plan upon completion of the definitive feasibility study.
4) Identifying additional mineral resources from the recently acquired
digitised historic production data and opening up new ground based on targets
identified through the recent analysis of the Talisman database
5) Fund the Company's obligations under the Rahu Joint Venture with Newcrest
Mining.
6) Working Capital requirements
Eligible shareholders will be able to purchase three (3) New Shares for every
one (1) existing NTL ordinary share held as at 7.00pm (NZT) on Tuesday, 24th
May 2016 (Record Date). New shares issued under the Offer will rank equally
with existing NTL ordinary shares on issue.
Matthew Hill said "While this is the largest capital raise undertaken by the
company since its inception the funds raised provide for a significant
opportunity to capitalise on the wealth of new data, expanded opportunities
which have recently been made available and the ability to work towards
generating the maximum gold ore in line with the current resource consents
and plans".
The Offer will also include a shortfall facility that will provide eligible
shareholders the opportunity to also request additional shares in excess of
their pro-rata entitlement.