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Talisker Resources Announces US$31,250,000 Financing with Sprott Resource Streaming and Royalty Corp. for the Bralorne Gold Project
TORONTO, June 12, 2023 (GLOBE NEWSWIRE) -- Talisker Resources Ltd. (“Talisker” or the “Company”) (TSX:TSK | OTCQX:TSKFF) is pleased to announce it has entered i
About this update from Talisker Resources Ltd.
[{"type":"text","content":" TORONTO, June 12, 2023 (GLOBE NEWSWIRE) -- Talisker Resources Ltd. (“Talisker” or the “Company”) (TSX:TSK | OTCQX:TSKFF) is pleased to announce it has entered into a royalty agreement with Sprott Resource Streaming and Royalty Corp. (“Sprott”) in relation to the Company’s 100% owned Bralorne Gold Project (the “Project”). Under the terms of the agreement, Sprott will pay the Company up to US$31,250,000 for a net smelter returns royalty (the “Royalty”) covering all minerals produced from the Project (the “Royalty Transaction”). Highlights of the Royalty Transaction include: A maximum of US$31,250,000, with a minimum consideration of US$18,750,000, payable as to: an initial grant of a 1.12% Royalty for a draw of US$7,000,000 for drilling, detailed engineering and working capital; a further 1.88% Royalty for a subsequent draw of US$11,750,000 on, among other things, the signing of a toll milling agreement for mobilization, site infrastructure, resource conversion drilling and working capital; and up to a further 2% Royalty, to a maximum of a 5% Royalty, for US$12,500,000 available as needed for site infrastructure, mine start-up capital and working capital; An option, exercisable solely at the discretion of the Company until December 31, 2028, to repurchase 50% of the Royalty (as more particularly described below); The residual Royalty will be reduced by an additional 50% for no additional consideration following 1.5 million ounces of gold production; and Closing of the initial 1.12% Royalty is subject to customary closing conditions and is expected to occur mid-June 2023. Terry Harbort, President and CEO of Talisker, stated, “This non-dilutive funding package delivers a major catalyst to Talisker, providing the necessary capital for the pathway to long-term production at Bralorne. The flexible deal provides the necessary upfront funds for infill drilling and development while protecting the Project’s considerable resource and exploration upside with buyback and capping optionality. Following on from our strong resource statement earlier in the year, we look forward to advancing Bralorne to the next stage.” Michael Harrison, Managing Partner, Sprott Resource Streaming and Royalty Corp. commented, “As a permitted high-grade Canadian asset with known metallurgy and exceptional grade and vein continuity, we are pleased to pa...