Road Town, British Virgin Islands--(Newsfile Corp. - November 16, 2017) - Talon Metals Corp. (TSX: TLO) ("Talon" or the "Company") is pleased to provide an update on the Tamarack Nickel-Copper-PGE project ("Tamarack Project"), located in Minnesota, USA. The Tamarack Project is comprised of the Tamarack North Project and the Tamarack South Project. Talon currently owns an 18.45% interest in the Tamarack Project.
As previously announced, Talon's wholly owned subsidiary, Talon Nickel (USA) LLC ("Talon Nickel"), was granted the exclusive option (the "Purchase Option") to purchase Kennecott Exploration Company's ("KEX") 81.55% interest in the Tamarack Project (which would give Talon Nickel a 100% interest in the Tamarack Project) for a total purchase price of US$114,000,000.
After much consideration, Talon Nickel has elected not to exercise the Purchase Option, and has advised KEX accordingly.
Pursuant to the Exploration and Option Agreement between KEX and Talon Nickel, the parties are now required to enter into the previously agreed upon Mining Venture Agreement within the next 90 days. Some notable elements of the Mining Venture Agreement (the form of which is filed under the Company's SEDAR profile at www.sedar.com) include:
- KEX, as manager, must propose annual work programs and budgets of at least US$6,150,000 (the "Minimum Annual Commitment") until completion of a feasibility study. Each of KEX and Talon Nickel is responsible to fund its pro rata share of such work programs and budgets, or be diluted in accordance with the terms of the Mining Venture Agreement.
- In the event of a proposed sale by KEX of its interest in the Tamarack Project, the Company has a right to match any third party offers to purchase such interest (i.e., a right of first refusal), as well as a tag-along right. KEX also has a drag-along right.
"After much consideration and analysis, we have decided not to purchase the Tamarack Project for the proposed purchase price of US$114 million," said Sean Werger, President of Talon. "Over the next 90 days, the Mining Venture Agreement will come into force. We look forward to receiving KEX's next proposed work program 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). The Company has a well-qualified exploration and mine management team with extensive experience in project management.
