New Talisman Gold Mines has secured a major investor and launched a rights issue to existing shareholders as it aims to advance its gold properties near Paeroa in the Hauraki District, including the historic Talisman mine. The new investor is Yang Xia, a director of an NZAX-listed shell company Vetilot, previously known as Investment Research Group.
Yang Xia is not connected to a group of Chinese investors which showed interest in the company earlier this year.
He will put up $1.16 million in funding in exchange for 25% of the company and a seat on the board, subject to shareholder and sharemarket approval. He also plans to introduce another independent investor, which has been confirmed by New Talisman's executive director Matthew Hill confirmed as being a mining company.
He says the investment is a real show of confidence in the company as the previous group of investors had not wanted an ownership stake, only a percentage of the gold and silver from the bulk sampling process.
The new funds will be used to start a bulk sampling project at the Talisman mine. Initial estimates are that the mine has about 205,000 ounces of gold. The mine is also thought to have about three times as much silver as gold.
Yang Xia’s stake in the company depends on the take-up of a new rights issue, which allows existing shareholders to each take up to NZ$15,000 in shares at 0.7c each. The issue is capped at 30% of the company’s shares.
The start of sampling work was delayed by conservation group Protect Karangahake, which had asked for a judicial review on a resource consent issued by Hauraki District Council. However, last week the group resolved to discontinue its application.
Matthew Hill, said he considered the resolution to discontinue the application had been made in the face of overwhelming evidence filed in the High Court that Hauraki District Council had processed the resource consent application strictly in accordance with the relevant provisions of the Resource Management Act and the Hauraki District plan.
“We are not overly surprised that Protect Karangahake has resolved to withdraw. Both New Talisman and the council were prepared to vigorously defend the consent process with detailed factual evidence and affidavits. The council should take great satisfaction from this decision which confirms it has sound systems in place to process applications. I congratulate the council on the robust rebuttal it provided in response to all the matters raised in the application for a judicial review.”