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Wellington, Sept 25 NZPA - Minerals exploration company Heritage Gold is worried about potential overseas investors' attitude to New Zealand as it continues to seek a partner for its Talisman Mine project.

Last November Heritage applied for a mining permit over an area to the south of the Coromandel Peninsula, including the historic Talisman Mine.

Chairman Geoffrey Hill told the Heritage annual meeting today a mining permit work programme was being negotiated with the Ministry of Economic Development.

The search for a suitable joint venture partner at Talisman continued, with Heritage seeking satisfactory terms that reflected the value of its investment and the economic potential of the project, he said.

"Our concern has been the reluctance of overseas groups to consider New Zealand as a mining and resource friendly environment.

"In view of the significant commercial opportunity at Talisman we will continue our endeavours to seek a suitable large partner. Chinese groups have expressed some interest and we are continuing dialogue with a number of overseas parties," Mr Hill said.

"Memories of past regulatory intransigence and a very lengthy process to get to mining continue to influence overseas investors' attitudes. The new Government has stated its intent to fast-track processes in the resources sector. We hope these essential changes occur soon."

As a mainly New Zealand explorer, Heritage attracted little investor interest in mining-oriented markets such as Australia and Canada. In this country the lack of interest in mining shares was also a limitation, Mr Hill said.

Consequently the board had embarked on a strategy in the past three months aimed at expanding the company's gold investments. It was now seeking participation in several interesting gold projects in Papua New Guinea, Chile and Australia -- regions which seemed able to attract investor interest.

"We continue to closely monitor our expenditures and the board is considering various fund raising options. 2010 will be an important year for your company and one where transformation will be necessary," Mr Hill said.

Heritage Gold shares were unchanged at 2.2c at early afternoon, having ranged between 3.8c and 1.3c in the past year.

NZPA