New Talisman Gold Mines' (ASX: NTL) shares are set to climb today after signing a Heads of Agreement with St Albans Pty Ltd, a special purpose vehicle founded by a Chinese investor group regarding the investment of NZ$10.9 million to fund the Talisman gold mine development project in New Zealand.
 
The agreement is subject to completion of satisfactory due diligence, entering into definitive binding agreements and NTL shareholder approval.

The terms of the agreement cover the funding requirements of NZ$10.9 million set out in the Talisman mine pre-feasibility study dated 30 March 2013 in return for 65% of the physical gold and silver produced from the reserves identified in the  study.

It also provides for the investor to bring in specialist gold extraction equipment, to be set up near the Talisman site for the processing of ore.

In addition to these terms, the agreement provides the incoming investor with first option to fund any future expansion at the Talisman Permit Area.

During due diligence the Investor will visit the Talisman mine site with a group of metallurgical and gold extraction specialists.

This site visit is planned for the coming weeks and will enable the parties to finalise the commercial terms of the agreement.