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- Talisman Mining has entered into a binding share sale agreement to divest its Sinclair Nickel Project for $10 million to Saracen Nickel
- Talisman will use the funds to focus on its New South Wales projects
- Talisman will receive a two per cent Net Smelter Return royalty for all future metal production from Sinclair and non-precious metal production from Saracen’s Waterloo Nickel Project
- Completion of the sale is expected to occur before the end of October 2019
Talisman Mining has entered into a binding share sale agreement to divest its Sinclair Nickel Project for $10 million to Saracen Nickel.
The sale of Sinclair is the second in Talisman’s recent bout of divestments. Last year, the Perth-based mining company sold its 30 per cent stake in the Monty copper-gold mine to Sandfire Resources for $72.3 million.
Consequently, it can now focus on its New South Wale projects.
“Talisman has only raised additional equity capital once in the last three years and is now well funded to explore its significant prospective NSW tenure,” Talisman Chairman Jeremy Kirkwood said.
As part of the transaction terms, Talisman will receive a two per cent Net Smelter Return royalty for all future metal production from Sinclair as well as non-precious metal production from Saracen’s Waterloo Nickel Project — if production restarts.
Waterloo has an Inferred Mineral Resource of 680,000 tonnes grading 2.1 per cent nickel for 14,000 tonnes of contained nickel.
Completion of the transaction is subject to the material infrastructure remaining at Sinclair and the consent of Glencore International’s subsidiary, Xstrata Nickel Australasia Operations.
Talisman acquired Sinclair from Glencore in October 2014 and has conducted exploration which provided encouraging drilling results. However, additional nickel deposits haven’t since been found.
In August 2018, Talisman calculated its maiden Indicated and Inferred Resource of 720,000 tonnes at 2.3 per cent nickel for 16,200 tonne of contained nickel from existing mine workings and extensional mineralisation at Sinclair.
By purchasing all of the shares in Talisman Nickel, Saracen will assume the obligation to make a $2 million deferred payment to Xstrata within six months if nickel production at Sinclair recommences by February 4 2021.
Talisman Managing Director Dan Madden is pleased the sale is proving financially positive.
“Upon completion, Talisman will have approximately $18 million in funding to support our increasing exploration activities at the Lachlan Copper-Gold Project and Lucknow Gold Project in NSW and our business development program,” he said.
Completion of the sale is expected to occur before the end of October 2019.
