NTL - New Talisman Mine - New board & Directors

[Landyman]

Its On

ANNOUNCEMENT BY NEW TALISMAN GOLDMINES LIMITED
[ASX, NZSX: NTL]

FOR IMMEDIATE RELEASE

RIGHTS ISSUE

New Talisman Gold Mines Ltd (ASX, NZSX : NTL) is pleased to announce that it
will provide eligible shareholders the opportunity to participate in a
pro-rata renounceable rights issue of new NTL shares (New Shares) at an issue
price of NZ$0.005 or AU$0.005 per New Share to raise up to approximately
NZ$12.265 million (Offer).

The Offer price represents a significant discount to the closing price on the
NZX as at 16th May 2016 of 1.5 cents. This provides existing shareholders
with a very attractive opportunity to participate in the growth of the
company at a time when the gold price is firming and sits currently around
approximately 1900 NZD per ounce.

The Company intends utilising the funds raised through this offer and current
cash reserves as follows:
1) Initiating the bulk sampling programme and associated works immediately
following completion of the raise
2) Accelerating the bulk sampling programme to maximise ore extraction within
the terms of the granted resource consents which allow for up to 20,000 cubic
metres per annum. This will be determined through detailed analysis of the
updated prefeasibility study and project plan currently being undertaken.
3) Accelerating the transition from bulk sampling to Phase 1 of the longer
term production plan upon completion of the definitive feasibility study.
4) Identifying additional mineral resources from the recently acquired
digitised historic production data and opening up new ground based on targets
identified through the recent analysis of the Talisman database
5) Fund the Company's obligations under the Rahu Joint Venture with Newcrest
Mining.
6) Working Capital requirements

Eligible shareholders will be able to purchase three (3) New Shares for every
one (1) existing NTL ordinary share held as at 7.00pm (NZT) on Tuesday, 24th
May 2016 (Record Date). New shares issued under the Offer will rank equally
with existing NTL ordinary shares on issue.

Matthew Hill said "While this is the largest capital raise undertaken by the
company since its inception the funds raised provide for a significant
opportunity to capitalise on the wealth of new data, expanded opportunities
which have recently been made available and the ability to work towards
generating the maximum gold ore in line with the current resource consents
and plans".

The Offer will also include a shortfall facility that will provide eligible
shareholders the opportunity to also request additional shares in excess of
their pro-rata entitlement.

[digger]

Tradeable rights wonder what the price will be set at ?
Thanks to Robbo.
The rights issue announcement from yesterday.

3 rights for every 1 share. Rights exercisable at 0.5 cents each. I think they will be tradeable rights which means you can sell them on market (if they are tradeable there will be a separate code for this).

There will be announcements covering all the info in due course, it is a requirement of NZX/ASX rules.

As I read it yesterday the rights will not be tradeable. Also if all rights are exercised about 12.5 million will come in to the company. Now the super big question is what does the company need with 12.5 million. last I heard it needed 1.5 to get the mining underway. So what is up????

[jonu]

As I read it yesterday the rights will not be tradeable. Also if all rights are exercised about 12.5 million will come in to the company. Now the super big question is what does the company need with 12.5 million. last I heard it needed 1.5 to get the mining underway. So what is up????

Very poorly handled announcement, but they have just issued more detail saying rights trading starts 23rd May.

[whatsup]

Are the current option holders able to participate without exercising their options ?

[bucko]

very cloak and dagger aye digger, should this announcement not have been made in conjunction with the appendix 7 yesterday?

$12.5mill is a heck of a lot for NTL number 5 sticks out: 5) Fund the Company's obligations under the Rahu Joint Venture with Newcrest
Mining...what are NTL's obligations?

[Stumpynuts]

At least we've been given the option of the first choice and preferred method of raising equity.

https://www.nzshareholders.co.nz/sha...tpracticeid=23

[youngatheart]

Does the record date take effect the same day one sells their shares? For example if one sold on Tuesday would one still be on record as a holder at 7pm given settlement takes 2 days...

[GR8DAY]

Does the record date take effect the same day one sells their shares? For example if one sold on Tuesday would one still be on record as a holder at 7pm given settlement takes 2 days...

........you are still recorded as the owner the day you sell and the day after.......however 2 days after you sell them (in your example thursday)......the new owner is recorded. Hope this helps.

[Landyman]

Hmmmm, this is a huge dilution (if you dont participate). Fair enough, if the $12m can be used well, and generate good returns. I just hope the Board arent going to line their own pockets and give themselves massive bonuses for the first real "production" of gold.

[whatsup]

Hmmmm, this is a huge dilution (if you dont participate). Fair enough, if the $12m can be used well, and generate good returns. I just hope the Board arent going to line their own pockets and give themselves massive bonuses for the first real "production" of gold.

Landy, if you have read the companies notices you would discover that the top table has been the main provider of funds for several years now, they deserve a pat on the back at least for their efforts both financially and dedication to the cause , if it wasn't them we wouldn't be here now, lets hope that they get this funding away either from current share holders or the underwriters ( chinese ).
If all goes well we may have a reasonable chance of success .