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New Talisman Gold Mines to offer shortfall shares

Published: 09:30 29 Aug 2014 EDT

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New Talisman Gold Mines (ASX:NTL) plans to undertake an offer of up to 204,219,035 new shares from the shortfall of its pro rata 1 for 2 renounceable rights offer priced at $0.008 each that closed on 6 June 2014.

The rights offer was made to initiate production at the Talisman Mine in New Zealand and fund general working capital.

This had raised $634,069 from the issue of 78,722,716 shares.

NTL had recently increased its total gold resources by 25% to just under 250,000 ounces after estimating an Inferred and Indicated Resource of almost 2.4 million tonnes at 0.54 grams per tonne, or 41,591 ounces of contained gold at its Rahu exploration permit.

Talisman is located on the Coromandel Peninsula and had previously produced 1 million ounces of gold and 3 million ounces of silver.

The company had completed about 2,492 metres of drilling at Rahu, which together with previous drilling campaigns and geological investigations, provides evidence its mineralisation and alteration present represents the upper levels of and northern extension of the Talisman epithermal gold system.

It has filed an application to include Rahu into the Talisman permit, allowing for a natural extension of mining operations.

NTL was also earlier this month granted authorisation to enter and operate the Talisman gold mine permit.

A work program is currently underway to exploit target areas, including Rahu, while discussions are progressing with a major gold producer regarding the potential for a joint venture arrangement on exploration targets at Rahu.

Analysis

With the recent declaration of Resource over the Rahu exploration permit and grant of authorisation to operate the Talisman gold mine, New Talisman Gold Mines has picked a good time to undertake an offer of the shortfall shares from the rights issue that closed in June.

Success will help initiate production at Talisman.

Other steps ahead include the lodgement of a health and safety management plan by the end of August as well as preparing ore stockpiles for treatment once it has finalised toll treatment arrangements.



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