Sandfire offers Talisman $72m for its 30pc stake in copper and gold venture

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Junior explorer Talisman Mining has accepted a $72.3 million cash offer from larger rival Sandfire Resources for its 30 per cent stake in Springfield copper and gold joint venture in Western Australia.

Chairman Jeremy Kirkwood told investors the deal represented “strong value realisation for Talisman’s 30 per cent share of the Springfield JV, and are in the best interests of all Talisman shareholders”.

“The upfront $A72.3 million cash payment crystallises substantial, immediate and certain value while removing exposure to future development and operating risks at Monty.”

Investors applauded the move, driving shares up as much as 27 per cent to an intra-day high of 33c on Friday.

Talisman revealed it was in talks with Sandfire when it requested a voluntary suspension earlier this week.

The deal is subject to shareholder approval.

Talisman says its largest shareholder, Kerry Harmanis, has already indicated his support for the proposed transaction.