On 15 November 2013 New Talisman Gold Mines Ltd (NTL) announced it had reached agreement with Armadale Capital PLC (ACP), an AIM listed UK public company, to assign NTL’s US$250,000 loan to Netcom Global Inc (Netcom) together with NTL’s 12.5% equity holding in Netcom to ACP in exchange for 93 million ACP shares.
NTL is pleased to announce that it has today completed a programme to sell down a substantial proportion of its shareholding in ACP. The proceeds of the sell down programme after brokerage and when repatriated and converted will approximate NZ$320,000 which will extinguish the Netcom loan and interest accrued thereon in New Talisman’s books.
Following completion of the sell down programme NTL retains in excess of 25 million shares in ACP which offers it an ongoing exposure to the Mpokoto gold project in the Democratic Republic of the Congo. The loan to Netcom was originally advanced for the purposes of progressing this project. NTL will review its shareholding in ACP from time to time having regard to progress made developing the Mpokoto project and its own funding requirements.
NTL chairman Murray McKee considered the transaction with ACP and the subsequent sell down programme to mark a very significant milestone for NTL. “We have recovered the full face value of the loan in our books together with interest. In addition we have retained an indirect exposure to the Mpokoto project which offers further value upside for our shareholders in the future. In short our 10 month investment in Netcom has generated a substantial gain for NTL” Mr Mckee said today. “Completion of the sell down programme has effectively cleared NTL’s decks for an all-out effort to bring the Talisman mine to fruition in 2014. I am confident we will be in a position to announce further positive developments at Talisman in the very near future” Mr McKee concluded.