Talisman Mining Ltd (ASX:TLM) has completed divestment of the Sinclair Nickel Project in Western Australia with proceeds to be used to expand exploration at copper and gold projects in New South Wales.
The non-core asset has been sold to Saracen Nickel Pty Ltd, a wholly-owned subsidiary of Saracen Mineral Holdings Ltd (ASX:SAR).
All conditions precedent, which were outstanding when the Share Sale Agreement (SSA) was signed last month have now been satisfied and the transaction has been completed.
$10 million cash payment
Talisman has received the $10 million cash payment and now has available cash resources of approximately $17.5 million.
The company will also receive a 2% Net Smelter Return royalty for any future metal production from the Sinclair tenements and any future non-precious metal production from Saracen’s Waterloo Nickel Project, which is on care and maintenance.
These royalties complement other royalties held by the company that provide exposure to copper-gold and iron ore projects.
Talisman aims to expand exploration at the Lachlan Copper-Gold Project in Western NSW and the Lucknow Gold Project in the state’s Central West.
The company will also pursue potential prospective exploration and advanced development gold and base metal opportunities in Australia and other low-risk jurisdictions.
A number of areas in the Lachlan project tenements in Cobar/Mineral Hill region show evidence of base and precious metals endowment which have had very little modern systematic exploration completed to date.
Talisman believes there is significant potential for the discovery of substantial base metals and gold mineralisation within this package and is undertaking active exploration to test a number of the targets.
Lucknow project farm-in
The company has also entered into a farm-in with privately-owned Lucknow Gold Limited in relation to the Lucknow project east of Orange.
Lucknow Goldfield was discovered in 1851 and was one of the earliest goldfields to be mined commercially in Australia.
Very little modern exploration has been completed outside of the existing mine workings.
Talisman intends to undertake a program of geochemical surface sampling and mapping ahead of drilling to test for potential down-plunge extensions of high-grade gold ore shoots and repeat structures throughout the project area.