New Talisman said its new loan facilities included an increase of an existing unsecured loan from director Richard Tacon from $300,000 to $350,000 and extending the final repayment date to December 31, 2025. The interest rate remains at 19% a year.
It has also entered into an unsecured loan with shareholder Hamish Brown of $850,000. The loan has an interest rate of 19% a year and is repayable by December 31, 2025.
The company has also entered into an unsecured loan with chairwoman Samantha Sharif of a minimum of $50,000 and up to $200,000. The loan has an interest rate of 19% a year and is repayable by December 31, 2025.
New Talisman said it anticipates making the first drawdown of $100,000 later this month.
It is also planning to open a capital raise, which it has previously signalled to the market.
New Talisman, whose former chief executive Matthew Hill was ordered last month to pay $100,000 for making false and misleading statements in breach of the Financial Markets Conducts Act, holds a mining permit in the Hauraki Gold Field near Waihī.
It experienced long delays in obtaining access arrangements from the Department of Conservation (DoC) and authority to enter and operate the Talisman Mine. It needs to raise further funds with its cash position falling to $480,997 as of its March 31 balance date. Last week it announced the access arrangements had been renewed.
The company’s annual report flagged material uncertainties in its ability to continue as a going concern and said it needed to raise more capital to progress production.
“No assurance can be given that such capital will be available at all or on terms acceptable to the company.”
It also said there was material uncertainty as to its ability to achieve certain production targets. Its cashflow requirement forecasts were based on certain assumptions around the timing, volume and grade of production, which also carried material uncertainty, along with the price of gold.
