Heritage Gold NZ's approximately 1800 New Zealand and Australian investors are to be offered a share purchase plan to raise up to $1.96 million to capitalise the promising Talisman gold mine project.
BUSINESSDESK: Heritage Gold NZ’s approximately 1800 New Zealand and Australian investors are to be offered a share purchase plan to raise up to $1.96 million to capitalise the promising Talisman gold mine project.
Some $15,000 of shares will be offered at a price of 1.9 cents a share ($A11,800 at A1.5 cents) to provide capital for New Talisman Gold Mine Ltd, the company to be formed from a break-up of Heritage Gold assets, to develop a gold mine with a potential net present value of $A150m.
The fourth year is projected to see the largest capital outlay, at $A20m.
Heritage shares fell to 2 cents today, a drop of 16.7% on their most recent previous trade.
The scoping study found the mine robust in the price range of $A1200 to $A2000 per ounce of gold and has a break-even gold price of under $A1000 an ounce.
“Using the base case assumed gold price of $A1600 per ounce and silver price of $A30 an ounce [close to current values], the review gives an internal rate of return of over 70%,” the study concluded.
Assets worth a little over $2m in other prospects, including a cobalt prospect in New South Wales, will be shuffled into a new company, Coromandel Gold Ltd.
The share purchase plan will only be open to New Zealand or Australian resident shareholders and subscriptions can also be made in lots of 1000 and $A800.
Under share purchase schemes, no more than 30% of the issued capital of the company can be offered for sale.
The issue price has been calculated by taking the volume weighted average price of Heritage shares traded on the NZSX over the five trading days prior to the record date and discounting this price by 10%, the company said.
Documents for the offer will be mailed to shareholders on April 16, with the offer closing on May 9.
Shareholder information on the Heritage website, dating from 2007, indicates the share is widely held in small parcels by around 1800 shareholders, of whom 459 owned 89.4% of the 342.8 million shares on issue at that time.
