(MENAFN- ProactiveInvestors)
( NZSX:NTL) has now closed out a rights issue that has raised around A$451000 which will be allocated to the continued development of the Talisman Mine in New Zealand.
The company received acceptances for a total of 52440108 new shares raising NZ$495547.37 and A$28853.71 before expenses at A$0.01 per share.
Cash flow generation
Earlier in the month NTL delivered a milestone in monetising ore from the Talisman Mine.
The company generated about NZ$100000 from its first sale of 60 ounces of gold and 227 ounces of silver.
Fifty tonnes of stockpiled Talisman ore were despatched to ’s (NYSE:NEM) treatment facility at Waihi were analysed and found to contain 64.5 ounces of gold at a recovered grade of 42.56g/t and 227.3 ounces of silver at 150.01g/t.
This is part of a residual stockpile of high grade ore stored on the hard stand area at the Talisman mine.
Smaller batches removed from the stockpile over the last 18 months were used to determine the metallurgical characteristics of the ore that will be produced from the Talisman mine in future and a preferred treatment process.
Samples taken from the stockpile for earlier laboratory analysis graded 1.5 ounces of gold per tonne and 8 ounces of silver per tonne.
A further batch of stockpiled high grade ore will be prepared for treatment following analysis.
Analysis
now has an additional circa A$475000 to be used to further develop the Talisman Mine in New Zealand.
Earlier in the month the company delivered a major milestone on its journey from explorer to producer with the first production of commercial gold from the historical mine site in over 30 years.
The sale generated about NZ$100000.
A potential re-rating catalyst for NTL could be a joint venture farm-in or ore processing agreement on Rahu with a significant gold producer.
Rahu currently has an Indicated and Inferred Resource of 41591 gold ounces and 258419 silver ounces.
Other share price kickers to look out for include the possibility of more batches of ore being treated with similar grades those announced today and the formal change of conditions relating to the mine lodged mid-year.
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