Talisman completes Pilbara asset sale

Talisman Mining has completed the sale of its Wonmunna and Uaroo iron ore projects to Rico Resources for a cash and scrip deal worth $41.3 million.

Rico, formerly known as E-Com Multi, will pay Talisman $34.2 million cash, issue 35.5 million Rico Resources shares and pay a one per cent gross royalty in exchange for the East Pilbara tenements.

Talisman's managing director, Gary Lethridge, said the completion of the sale represented a significant platform for future growth, with the company now holding around $47 million in cash.

"Talisman is currently undertaking the largest exploration initiative in its history with an exploration budget for 2011 of $10 million," he said.

"Our funding capability will permit active ongoing exploration and growth activities in the Bryah Basin and elsewhere, plus significantly enhance our ability to target additional new growth opportunities in the Australian resources sector.

"The transaction also provides potential future value upside for Talisman through its Rico Resources shareholding."