New Talisman places share shortfall, raising $1.77 mln

Wednesday 17th August 2016

Coromandel gold-mining prospector New Talisman Gold Mines has raised $1.77 million through the issue of new shares following a shortfall in its May rights issue.

The company said in July that it had raised just $4.69 million in a fundraising that management had hoped would raise up to $12.26 million. Under the rules of the NZX and ASX, it had until the end of September to place some of that shortfall with investors.

In a statement, the company said it had issued 353,737,754 shares at 0.5 of a cent, taking the total amount raised to $6.46 million.

New Talisman has also released the results of analysis of geological data from the deeper parts of the Talisman Mine, which it says have been "sufficiently robust" to lead to the development of a standalone scoping study looking at potential production volumes and the financial cost of expanding operations in this area of the mine.

Chief executive Mathew Hill told investors that "the preliminary results confirm our view that there is an excellent opportunity here to expand the current resource and extend the life of the mine with an increased production rate."

Shares of New Talisman were one of the biggest gainers on the NZX, rising 16.67 percent, or 0.1 cent, to 0.7 cents.

(BusinessDesk)

BusinessDesk.co.nz

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