Talisman shares steady despite Harmanis stake

Shares in aspiring iron ore miner Talisman Mining Ltd made a small eight per cent gain on return to trade today, despite news that Jubilee Mines Ltd executive chairman Kerry Harmanis will acquire a stake in the company.

Talisman stock opened at $1.41 per share, before edging down to close at $1.30, the same price per share prior to last Wednesday's trading halt.

West Perth-based Talisman announced a $9 million capital raising last week via the placement of nine million shares at $1.00 each, which it intends to use primarily for resource drilling and development of its 100 per cent owned Wonmunna iron ore project in the Pilbara.

Mr Harmanis will invest $2 million in the placement through his company Tyche Holdings Pty Ltd, and buy about $3 million worth of shares from Talisman managing director Steve Elliott, giving Mr Harmanis a significant stake in the company.

Mr Elliott will use the derived funds to exercise a minimum four million unlisted Talisman options.

It is anticipated that the raising will be complete by December 20, 2007.