Strategic Plan and Proposed Issue of Convertible Notes

27 April 2022
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED
(ASX, NZX: NTL, NTLOB)
FOR IMMEDIATE RELEASE

Strategic Plan and Proposed Issue of Convertible Debt Security updated to include the terms of the Convertible Debt Security and to match compliance with certain listing rules pertinent only to the ASX

The Board of New Talisman Gold Mines Ltd (NTL) is pleased to announce it has completed its assessment of the pathway to production from its core asset the Talisman mine and today outlines its Strategic Plan and funding intentions.
NTL also advises it has engaged Corporate Advisors Campbell MacPherson to seek eligible and wholesale investors in a private placement of a Convertible Debt Security to help fund the Strategic Plan. 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.
Authorised for release by:
Mr J Upperton
Chairman - New Talisman Gold Mines Limited

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Announcement PDF