Business
Talon Enters into Option Agreement with Kennecott Exploration (A Subsidiary of the Rio Tinto Group) to Acquire up to a 60% Interest in the Tamarack Project
Road Town, British Virgin Islands--(Newsfile Corp. - November 7, 2018) - Talon Metals Corp. (T...
About this update from Talon Metals Corp.
[{"type":"text","content":"Talon Enters into Option Agreement with Kennecott Exploration (A Subsidiary of the Rio Tinto Group) to Acquire up to a 60% Interest in the Tamarack ProjectRoad Town, British Virgin Islands--(Newsfile Corp. - November 7, 2018) - Talon Metals Corp. (TSX: TLO) announced today that its wholly owned indirect subsidiary, Talon Nickel (USA) LLC (collectively, \"Talon\" or the \"Company\"), has entered into an option agreement (the \"Option Agreement\") with Kennecott Exploration Company (\"Kennecott\"), a subsidiary of the Rio Tinto Group, pursuant to which Talon will have the right to acquire up to a 60% interest in the Tamarack Project on the satisfaction of certain terms and conditions. In addition, the Company has announced that it has entered into amending agreements in connection with its existing debt facilities with Resource Capital Fund VI L.P. (\"RCF\"). Subject to satisfaction of the conditions in the amending agreements, RCF has agreed to convert all outstanding amounts under the convertible loan facility as well as the promissory note at an effective conversion price of $0.11 per share (the \"RCF Debt Conversion\"). The RCF Debt Conversion would occur concurrently with the first payment to Kennecott under the Option Agreement. Following the completion of the RCF Debt Conversion, Talon will be a debt-free company, save for liabilities in the ordinary course of business.\"Today is a new start for Talon,\" said Sean Werger, President of Talon. \"We are thrilled to have the opportunity to acquire a majority stake in one of the world's only remaining undeveloped high grade nickel-copper-cobalt projects on infrastructure. Our strategy for the Tamarack Project is to eventually produce Class 1 nickel, which is required for batteries for the electric vehicle market. We would like to thank both Kennecott and RCF for their support thus far. It is a tremendous stamp of approval to have Kennecott maintain a significant stake in the Tamarack Project, and for RCF to convert all of its debt into common shares of Talon.\" Option AgreementPursuant to the terms of the Option Agreement, Talon will immediately take over operatorship of the Tamarack Project (with certain Kennecott employees being seconded to Talon) and have the right to acquire a 51% interest in the Tamarack Project (for clarity which is an additional 33.44% to its current owne...