27/09/2019 - 12:58

Saracen buys nickel project for $10m

27/09/2019 - 12:58

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Talisman Mining has stuck a deal to sell its Sinclair nickel project to Saracen Mineral Holdings for $10 million in cash plus royalties.

Saracen buys nickel project for $10m
The Sinclair nickel project was placed on care and maintenance in 2013. Photo: GR Engineering Services

Talisman Mining has stuck a deal to sell its Sinclair nickel project to Saracen Mineral Holdings for $10 million in cash plus royalties.

Under the deal, Saracen will receive a 2 per cent net smelter return royalty from Sinclair and all future non-precious metal production from Saracen’s Waterloo nickel project.

The mine, which is located between Wiluna and Leonora, was placed on care and maintenance in 2013, and Talisman said the sale would remove current holding costs of approximately $2 million per annum.

Saracen's Thunderbox gold operations are located 25 kilometres north-east of Sinclair.

Managing director Daniel Madden said Saracen’s offer represented the best outcome for Talisman shareholders.

“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,” he said.

“The transaction will also remove more than $2 million in annual commitments relating to Sinclair, plus a contingent environmental liability of $9 million.”

Shares in Talisman were up 13.1 per cent to trade at 11 cents each at 2.33pm AEST.

 

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