New Talisman's Chinese deal wavers
PERTH (miningweekly.com) – The board of junior New Talisman Gold Mines was considering its legal options after a Chinese investor failed to come to the party.
In June, New Talisman signed a binding term sheet with investor Yang Xia to invest some NZ$1.16-million to fund the development of the Talisman mine bulk sampling project, in exchange for around 145.5-million shares, priced at 8c each.
A subsequent 32.3-million shares, at 8c a share, would also have been placed to Yang, within a 45-day period following the first investment and subject to shareholder approval. The second investment was expected to have raised a further NZ$296 000.
At a recent annual general meeting, New Talisman shareholders passed a resolution to allow the company to complete the transaction without the need for further shareholder approval.
However, the company told shareholders on Tuesday that Yang had failed to settle the proposed investment for 182.8-million shares.
The New Talisman board has now issued a letter of demand to Yang.
The bulk sampling project was expected to provide the first cash flow from operation and would allow New Talisman to be cash flow positive within 12 months from the start of sampling.
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