Business
Talon Announces Financing Transactions and Conversion of Outstanding Debt Facilities
Road Town, British Virgin Islands--(Newsfile Corp. - March 7, 2019) - Talon Metals Corp. (TSX:...
About this update from Talon Metals Corp.
[{"type":"text","content":"Talon Announces Financing Transactions and Conversion of Outstanding Debt FacilitiesRoad Town, British Virgin Islands--(Newsfile Corp. - March 7, 2019) - Talon Metals Corp. (TSX: TLO) (\"Talon\" or the \"Company\") is pleased to announce that it has raised a total of C$9.825 million. The Company expects to close an additional tranche in the amount of C$350,000 which in aggregate will result in the Company raising a total of C$10.175 million. These funds will be used to, among other things, make the initial payment under its existing joint venture agreement in respect of the Tamarack Project (the \"JV Agreement\"). The Company has also entered into a series of conversion transactions with Resource Capital Fund VI L.P. (\"RCF\"), which has eliminated approximately C$32 million in debt.\"Today's announcement represents a major milestone for Talon,\" said Sean Werger, President of the Company. \"We have raised the money required to make the upfront payment to lock-in our option to earn up to a 60% interest in the Tamarack Project; we have become a debt-free Company, with RCF converting 95% of its debt at C$0.156 per common share, representing nearly a 100% premium to the price at which the Company has just raised capital; and we now have excellent investors in both Triple Flag and RCF.\"Financing ArrangementsThe Company is pleased to announce that it has completed a private placement offering of 39,375,000 common shares at a price of C$0.08 per share for aggregate gross proceeds of C$3.15 million. The Company expects to close a second tranche for additional gross proceeds of C$350,000. In addition, Talon Nickel (USA) LLC, a wholly owned subsidiary of Talon, has agreed to grant a net smelter returns royalty to 10782343 Canada Limited (the \"Holder\"), a subsidiary of Triple Flag Mining Finance Bermuda Ltd., in consideration of the payment of US$5.0 million. The Company, together with its subsidiaries, Cloudmine Holdings Limited and Talon Metals (USA) Inc., have agreed to guarantee the payment and performance obligations under the royalty agreement. The royalty is 3.5% of net smelter returns and will be paid out of Talon's participating interest in the Tamarack Project. The royalty agreement contains a put right pursuant to which the Holder has in certain instances an option to cause Talon to repurchase the entire royalty for a cash p...