New Talisman Gold Mines (ASX:NTL) raises just half of the NZ$3.45m sought in rights issue

• New Talisman Gold Mines (NTL) completes its recently-announced rights offer to raise roughly NZ$1.71 million (A$1.6 million) — only half of what it sought
• Last month, the company opened the three-for-five rights issue offer, under which it sought to raise NZ$3.45 million by issuing new shares at 1.7 cents
• While the company fell short of its target, New Talisman insists the amount raised is “substantial enough” to progress its namesake mine
• NTL will now allow applications for a shortfall offer with the same terms as the rights issue, which has already been gaining interest
• New Talisman shares last traded at 1.7 cents on Monday afternoon

New Talisman Gold Mines (NTL) has completed its recently-announced rights offer to raise roughly NZ$1.71 million (A$1.6 million) — only half of what it sought.

Last month, the company opened the three-for-five rights issue offer, under which it sought to raise NZ$3.45 million by issuing new shares at 1.7 cents.

The company said the majority of its top 20 shareholders participated in the offer.

“We are grateful to our shareholders for their strong support for our capital raise and particularly pleased to see such a high level of oversubscription at 33 per cent from those that participated,” Samantha Sharif, Chair of NTL, said.

While NTL fell short of its NZ$3.45 million target, the company said the amount raised was “substantial enough” to restart underground mining progress on its Talisman mine. The company also affirmed it would now allow applications for a shortfall offer with the same terms as the rights issue, which has already been gaining interest.

Previous chip sampling on the Mystery vein in the Talisman mine area showed an average value of 32 grams of gold per tonne. The vein appears to follow a north-south direction, and neighbours the Maria lode which historically produced 3.5 million ounces of precious metals.

“This now allows us to move forward with our strategic plan to commence bulk sampling on the Mystery vein at Talisman and finally begin to realize the potential of the company for shareholders,” Ms Sharif said.

New Talisman shares last traded at 1.7 cents on Monday afternoon.