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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 pokies online 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.
?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.