NTL - New Talisman Mine - New board & Directors

**nztx** · 27-04-2022, 10:02 AM

https://www.nzx.com/announcements/391051

Strategic Plan and Proposed Issue of Convertible Notes

NTL already has NZ$1 million pledged from substantial product holder Hamish Brown and is seeking an additional NZ$2.5m pledged to the same mechanism (up to NZ$3.5m in total) which, once necessary regulatory timeframes have been met, will then be subject to shareholder approval at a meeting prior to the Convertible Debt Security being issued. The issue of the Convertible Debt Security and its terms, along with any potential issue of shares, are subject to approval by shareholders and have the following terms:

• Term, 18 months from drawdown,

• Drawdown of the Convertible Debt Security will be in one tranche,

• Annual Interest rate of 9.5%, payable quarterly in cash, there is no option to settle interest by any other means.

• Conversion to ordinary shares at the 18 month anniversary of drawdown at a 15% discount to the preceding 20 day VWAP of the ordinary shares of the Company, or at the discretion of the Company repaid in cash on the 18 month anniversary of drawdown, with no additional fees.

• The Convertible Debt Security will be unsecured and rank pari-passu with unsecured trade creditors.

The funds are being sought to enable the company to implement its Strategic Plan which includes:

• Recommencing underground activities at the mine, including developing the required Second Egress.

• Advancing the Mystery Vein shaft.

• Advancing the Mystery Vein will trigger the existing 2 year Bulk Sampling Consent.

• Opening a second face on the Mystery vein once the Second Egress is complete.

• Funding the implementation of the Traffic Management Plan

• Funding the Resource Consent application for Full Mining Consent

The Company will pay Campbell MacPherson a retainer of NZ$7,500 plus a 5% success fee applying to the NZ$2.5m of additional Capital raised. (a maximum total fee of NZ$132,500 to be paid in cash, there is no option to settle the fee by any other means).

The company continues to evaluate processing options with third parties, and has preliminary designs for its own small scale plant if required. We will provide updates as this component progresses.

The Board is pleased to have reached this important milestone in the Company’s stabilisation, and looks forward to bringing the mine into production. The Board would like to acknowledge the ongoing support and patience of shareholders through what has been a difficult time. We feel this proposal heralds an exciting new chapter for NTL.

**Joshuatree** · 27-04-2022, 10:11 AM

Viandi Fraiche with a new set of directors and suckers,imo, rinse and retreat

**Chippie** · 27-04-2022, 10:25 AM

I like the convertible debt option. Also happy with the progress, I did fear this could be a write off if previous management had been completely lying and not just incompetent

**dubya** · 27-04-2022, 10:41 AM

Originally Posted by Joshuatree

Viandi Fraiche with a new set of directors and suckers,imo, rinse and retreat

Yup its been going on for decades now.

**Paint it Black** · 27-04-2022, 03:41 PM

This deal imho is as good as it will get for shareholders given the circumstances inherited by the new board. The second egress route, which was at best only vaguely mentioned by the expelled board, is now at last being addressed and a realistic strategy is in place to both obtain the funding and profitably produce the long awaited gold. It is fortunate that the major shareholder Hamish Brown has already pledged $1 million which already is almost a third of that estimated to implement the strategy. Of course due to NTL's low cash base shareholders will need to pay a 5% success fee to the brokers (excluding Hamish's contribution) as well as a 9.5% pa interest rate and 15% discount on the conversion of the notes to shares at the end of 2023. However the deal means there will not be a need for the cash raise from shareholders proposed by the expelled board. This was never going to succeed from the weary shareholders and full marks to the new board and Hamish for managing this alternative arrangement which one hopes will be approved by shareholders at the end of June.

**Chippie** · 27-04-2022, 07:41 PM

Originally Posted by Paint it Black

This deal imho is as good as it will get for shareholders given the circumstances inherited by the new board.... and full marks to the new board and Hamish for managing this alternative arrangement which one hopes will be approved by shareholders at the end of June.

Absolutely agree, good points