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Chinese capital for Talisman mine project
16 December 2013 The long awaited re-development of the historic Talisman mine at Karangahake has received a boost from a Chinese company.
Owner New Talisman Gold Mines Ltd (NZX & ASX: NTL) said a “special purpose vehicle set up by Chinese investor group has signed a heads of agreement to invest $10.9 million in development and operation of the Talisman mine.
The entity St Albans Pty Ltd will undertake a due diligence programme on the basis of getting a right to earn a 65% stake in an operating mine.
New Talisman executive director Matthew Hill said the terms also allow St Alban to bring to the project “specialist gold extraction capabilities and plant and equipment which are intended to be set up near the Talisman.
The Chinese company will also be given the option to fund any future expansion on the Talisman licence.
Hill said that during due diligence the investor will visit the mine site with a group of metallurgical and gold extraction specialists in the coming weeks.
As reported by this website earlier New Talisman had engaged Asian company Emerald Resources (Asia) Ltd to secure a potential project partner.
“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,” Hill added.
New Talisman, under its earlier name of Heritage Gold had picked up the Talisman mine many years ago after its leases in the northern Coromandel had been taken away under pressure of environmentalists. As a result, Talisman became its prime target.
The company also holds the Rahu prospect next to Karangahake where it has made a grass roots epithermal gold-silver discovery, and retains a licence in Waihi and permits in Northland.