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.
ROAD TOWN, Tortola, British Virgin Islands, March 26, 2015 /CNW/ - 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.
SOURCE Talon Metals Corp.