In a bid to concentrate on the development of its Talisman Gold Mine Project near Waihi in New Zealand, Heritage Gold NZ has announced plans to break up the company into two separate entities, replacing its chairman and transfer non-core assets to a wholly-owned subsidiary.

At the same time, the company wants to amend its name to New Talisman Gold Mines Ltd. Once approved, the new company will apply for new codes at the ASX and NZX stock exchanges.

"The move comes in the wake of a recently completed scoping study review which found there was potential to develop a highly profitable mine at Talisman based on estimates that the project had a net present value of more than A$150 million," Heritage Gold NZ said in a statement.

"The review was enhanced by a substantially improved gold price and considerable advances in mining and processing technology," the company added.

To fund the Talisman development, Heritage mulls to raise $1.5 million through a share purchase plan.

It will transfer all its existing non-core assets worth $2.1 million book value to Coromandel Gold, a wholly-owned subsidiary. Later on, Coromandel Gold will consider its own on-going funding, Heritage Gold NZ said.

Shares grew 0.6 cents to 2.4 cents on Wednesday after Heritage Gold NZ made the announcement. Shares had been trading at 1.5 cents in early March, their lowest since June last year.