A director of New Talisman Gold Mines (ASX:NTL) has agreed to provide a $300,000 unsecured loan to help with short-term cash flow until the junior explorer can undertake a capital raising.
The loan, which is being provided by independent Director Richard Tacon, attracts a 19% per annum interest rate.
The company, which has a market capitalisation of $8.8 million, had $593,000 in cash at the end of the March 2024 quarter.
New Talisman owns the Talisman Gold Mine in the Hauraki Gold Field in New Zealand.
Historically the Karangahake region has been mined on and off since 1875, producing more than 1 million ounces of gold and 3 million ounces of silver.
The majority of this production came from the Talisman and Crown mines, two separate vein systems, which are now covered by the Talisman mining permit.
In early May, New Talisman submitted an application for the mine to be considered as a listed project in the Fast Track Approvals Bill introduced by the new government.
This new regime, which forms part of the New Zealand Government’s coalition agreement, is intended to streamline the process for resource approvals for significant projects.
New Talisman says it has been able to progress the Talisman mine to a state of readiness to begin production, which was anticipated in the December quarter last year.
However, the company says despite its best efforts at proactive engagement, the Department of Conservation has been “extremely slow and unfocused in progressing its long-term access arrangement and associated authority to enter and operate”.
“The inevitable result of these delays, and the impact on our original production and revenue timetable, is that we will now have to raise further funds before we are able to remobilise our team, finalise a processing agreement, buy a processing plant and commence production.”
New Talisman now expects a decision to be handed down in June 2024, which is also when it plans to undertake a capital raising.
Write to Angela East at Mining.com.au
Images: New Talisman Gold Mines
