ROAD TOWN, Tortola, March 26, 2015
/PRNewswire/ --
TSX:TLO
HIGHLIGHTS
- Talon secures funding to meet current exploration and other
contractual commitments to Kennecott, with:
- a US$4,000,000 unsecured loan
provided by Kennecott, with a maturity date of December 21, 2015; and
- a deferral until December 21,
2015 of the US$2,500,000
option payment, due by Talon to Kennecott on June 26, 2015.
- Kennecott has also agreed that no further cash calls will be
made beyond the amount of the loan until Q4 2015.
Talon Metals Corp. ("Talon" or the "Company")
(TSX:TLO) is pleased to announce that Kennecott Exploration Company
("Kennecott"), a subsidiary of the Rio Tinto Group, has
provided the Company with an unsecured loan (the "Unsecured
Loan") in the principal amount of US$4,000,000. The Unsecured Loan will be used by
Talon to continue to fund exploration activities and make certain
land option payments at the Tamarack Nickel-Copper-PGE Project (the
"Tamarack Project"), located in Minnesota, USA. The Unsecured Loan will mature
on December 21, 2015 and will bear
interest at the rate of LIBOR plus 8% per annum.
Kennecott also agreed to:
- defer a US$2,500,000 option
payment due by Talon on June 26, 2015
pursuant to the Exploration and Option Agreement dated June 25, 2014 between Talon Nickel (USA) LLC (a subsidiary of Talon) and Kennecott
(the "Earn-in Agreement") until December 21, 2015; and
- not make any cash calls from Talon beyond the amount of the
Unsecured Loan until the fourth quarter of 2015.
As a result of the above, Talon:
- has time to pursue various funding options to enable the
Company to finance its funding and payment obligations under the
Earn-in Agreement in order to acquire a 30% interest in the
Tamarack Project; and
- will remain in good standing under the terms of the Earn-in
Agreement.
"This funding arrangement, whereby Kennecott has effectively
agreed to fund ongoing and future activities at Tamarack on Talon's
behalf, demonstrates Kennecott's commitment to the Tamarack Project
and the strength of its relationship with Talon," said Henri van Rooyen, CEO of Talon.
"Despite having no obligations to do so, and in the
spirit of true partnership, Kennecott has agreed to provide Talon
with the time it needs to arrange for financing on reasonable terms
in these challenging capital markets for junior exploration
companies. At the same time, Talon and Kennecott both recognize the
importance of continued exploration at Tamarack, and consequently,
Kennecott has agreed to fund ongoing and future exploration
expenditures at Tamarack on Talon's behalf."
EXPLORATION UPDATE
The 2015 winter exploration program, which commenced in
January 2015, has been progressing
well, and is in the process of winding down. The Company looks
forward to providing an update shortly as and when results from the
program are received.
Kennecott and Talon have already started planning for the next
phase of exploration at the Tamarack Project.
About Talon
Talon is a TSX-listed company focused on the exploration and
development of the Tamarack Nickel-Copper-PGE Project in
Minnesota, USA (which comprises
the Tamarack North Project and the Tamarack South Project) and the
Trairão Iron Project in Parà State, Brazil. The Company has a well-qualified
exploration and mine management team with extensive experience in
project management.
Forward-Looking Statements
This news release contains certain "forward-looking statements".
All statements, other than statements of historical fact that
address activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future
are forward looking statements. These forward-looking statements
reflect the current expectations or beliefs of the Company based on
information currently available to the Company. Such
forward-looking statements include, among other things, statements
relating to the time and ability of Talon to arrange for financing
on reasonable terms, the ability of Talon to remain in good
standing under the terms of the Earn-in Agreement, Kennecott's
future commitment to the Tamarack Project and the continued
exploration at the Tamarack Project.
Forward-looking statements are subject to significant risks and
uncertainties and other factors that could cause the actual results
to differ materially from those discussed in the forward-looking
statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, but are not limited
to: changes in commodity prices, including nickel and copper;
changes in interest rates; risks inherent in exploration results,
timing and success, including failure to identify mineral resources
or mineral reserves; inaccurate geological and metallurgical
assumptions (including with respect to the size, grade and
recoverability of mineral reserves and resources); uncertainties
relating to the financing needed to further explore and develop the
properties or to put a mine into production; the costs of
commencing production varying significantly from estimates;
unexpected geological conditions; changes in power prices;
unanticipated operational difficulties (including failure of plant,
equipment or processes to operate in accordance with
specifications, cost escalation, unavailability of materials,
equipment and third-party contractors, inability to obtain or
delays in receiving government or regulatory approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters); political risk,
social unrest, and changes in general economic conditions or
conditions in the financial markets.
Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to the
inherent uncertainty therein.
For additional information on Talon, please visit the Company's
website at http://www.talonmetals.com or contact: Sean Werger, President, Talon Metals Corp., Tel:
+1-(416) 361-9636 x247, Email: werger@talonmetals.com
