Business
Talon Metals Reduces Royalty on the Tamarack Nickel Project
Tamarack, Minnesota and Road Town, Tortola, British Virgin Islands--(Newsfile Corp. - February...
About this update from Talon Metals Corp.
[{"type":"text","content":"Talon Metals Reduces Royalty on the Tamarack Nickel ProjectTamarack, Minnesota and Road Town, Tortola, British Virgin Islands--(Newsfile Corp. - February 15, 2022) - Talon Metals Corp. (TSX: TLO) (OTC Pink: TLOFF), through its U.S. subsidiary Talon Nickel (USA) LLC (collectively \"Talon\" or the \"Company\"), has entered into an amending agreement with TF R&S Canada Ltd., a subsidiary of Triple Flag Precious Metals Corp. (with its subsidiaries, \"Triple Flag\"), to effect the early exercise of Talon's right to reduce an existing net smelter returns royalty on Talon's interest in the Tamarack Nickel Project from 3.5% to 1.85% in exchange for the payment by Talon of US$4.5 million to Triple Flag. \"Reducing the royalty held by Triple Flag is another important step towards taking Talon to the next level, following our recent supply agreement with Tesla, remarkable drill results and successful capital raise to strengthen our balance sheet. Paying US$4.5 million today to reduce our royalty from 3.5% to 1.85% is value accretive and preserves significant value for shareholders,\" said Sean Werger, President. \"Shaun Usmar and the Triple Flag team were one of the first investors to recognize the world-class nature of the Tamarack Nickel Project when we struck the royalty agreement in 2019. Our agreement today demonstrates that they are not just good investors but true partners in the companies in which they invest.\"\"We are proud to have partnered with Talon at an early stage to enable them to acquire their interest in the Tamarack Nickel Project from Rio Tinto,\" said Shaun Usmar, Founder and CEO of Triple Flag. \"Sean Werger and Henri van Rooyen and their team have been immensely impressive in continuously delivering on our investment thesis of a well-located, world-class nickel district play that could supply the growing need for battery metals in the North American market, which is underserved with opportunities of this quality. They have been remarkably successful in proving up the district scale potential of this world-class orebody with continuous discovery through the drill bit since we made the investment. We are grateful to their team and excited for our ongoing association and partnership with Talon.\" BackgroundOn March 7, 2019, Talon granted a 3.5% net smelter returns royalty to Triple Flag on Talon's interest in the T...