Following delay, Talisman Mining has now signed a conditional share agreement with Sandfire Resources for the purchase of Talisman’s 30 per cent interest in the Springfield joint venture (JV) in Western Australia.
The purchase plan was originally announced in June and delayed in July. The Springfield JV collectively comprises the Monty Mining JV and Springfield Exploration JV. The high-grade Monty copper-gold project’s ore is expected to feed Sandfire’s plant at the nearby DeGrussa mine.
Sandfire is to acquire Talisman A Pty, the Talisman subsidiary that holds the 30 per cent interest in the project, for $72.3 million. Once the exchange is finalised, Talisman will have a post-tax amount of around $50–55 million in cash for loan repayments and working capital.
Talisman, Talisman A and Sandfire have also carried out a royalty deed, granting Talisman a 1 per cent net smelter return (NSR) royalty on all copper and gold mined and sold from the Springfield JV mining area.
Talisman’s board members have unanimously recommended shareholders agree to the sale.