Talisman to buy Glencore project for $10m

Shares in Perth-based gold explorer Talisman Mining have surged more than 70 per cent after the company announced it had entered into a binding agreement for Swiss-based Glencore International’s Sinclair nickel project in the Goldfields for $10 million.

The acquisition includes a 300,000 tonnes per annum plant, a 200-room accommodation village, an open cut and underground mine, and a two kilometre sealed airstrip.

Under the terms of the deal, Talisman will make an $8 million cash payment upon completion of the transaction, and pay an additional $2 million within six years of the transaction being finalised.

The Sinclair project was placed on care and maintenance in August last year.

Talisman managing director Gary Lethridge said the acquistion would provide the company with an opportunity to join the nickel sulphide industry.

Talisman is currently exploring its Doolgunna tenements in the Bryah Basin under a joint venture with Sandfire Resources, which, in December last year, farmed-in to the project by providing $15 million to help fund the exploration.

Glencore made headlines last week when it proposed a merger deal with mining giant Rio Tinto, which was quickly shut down when Rio publicly stated that it was not interested.

Talisman shares were 76.19 per cent higher at 18.5 cents per share at 10am.