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Talon Metals and Kennecott Form the Mining Venture and Agree to Accelerate the Winter Exploration Program at Tamarack
Road Town, British Virgin Islands--(Newsfile Corp. - January 11, 2018) - Talon Metals Corp. (T...
About this update from Talon Metals Corp.
[{"type":"text","content":"Talon Metals and Kennecott Form the Mining Venture and Agree to Accelerate the Winter Exploration Program at TamarackRoad Town, British Virgin Islands--(Newsfile Corp. - January 11, 2018) - 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 comprises the Tamarack North Project and the Tamarack South Project. Talon and Kennecott Exploration Company (\"KEX\") have made certain amendments to the Exploration and Option Agreement and the Mining Venture Agreement to allow for a 2018 winter exploration program at the Tamarack Project. More specifically, under the Mining Venture Agreement, KEX has proposed the following exploration program at the Tamarack Project:Figure 1: Plan View of Historical and Planned 2018 KEX Winter Program DrillholesTo view an enhanced version of Figure 1, please visit: http://orders.newsfilecorp.com/files/2443/31931_a1515642106149_48.jpgIn order to allow for the 2018 winter exploration program to proceed, certain amendments were required under the agreements between Talon and KEX:-   Under the Exploration and Option Agreement, Talon and KEX have agreed that the Mining Venture Agreement will be entered into with immediate effect, rather than in February 2018; and-   Under the Mining Venture Agreement, Talon and KEX have agreed to accelerate the timing for the approval process of the 2018 winter exploration program, so that the program is approved with immediate effect.After an analysis of the potential impact of the 2018 winter exploration program on a future mine at the Tamarack Project, Talon has advised KEX that it has elected to not financially participate in the 2018 winter exploration program. Consequently, in return for KEX's further expected investment of US$5.4 million, Talon's interest in the Tamarack Project will be diluted by a maximum of approximately 1.48%, from 18.45% to 16.97% (note that dilution may be less if KEX elects to spend less money during the 2018 winter exploration program). \"Talon's 1.48% expected dilution in return for an additional US$5.4 million (approximately C$6.7 million) investment at Tamarack is akin to Talon raising money in the capital markets at a substantial premium to its current share p...