Talon Metals Reduces Royalty on the Tamarack Nickel Project
Talon Metals Reduces Royalty on the
Tamarack Nickel Project
Tamarack, 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."
Background
On March 7, 2019, Talon granted a 3.5% net smelter returns royalty to Triple Flag on Talon's interest in
the Tamarack Nickel Project. The royalty was granted by Talon to Triple Flag in exchange for Triple Flag
providing Talon with a portion of the initial funding required by Talon to secure the rights to earn a 60%
interest in the Tamarack Nickel Project.
Subject to certain events occurring, Talon was provided with a one-time option, exercisable in or around
March 2022, to reduce the percentage of the net smelter returns royalty from 3.5% to 1.85% in exchange
for a cash payment to Triple Flag in the amount of US$4.5 million.
Triple Flag has agreed to allow Talon to accelerate its option to reduce the royalty to 1.85% in exchange
for the payment of US$4.5 million.
ABOUT TALON
Talon is a TSX-listed base metals company in a joint venture with
Rio Tinto
on the high-grade
Tamarack
Nickel-Copper-Cobalt Project
located in central Minnesota. Talon's shares are also traded in the US
over the OTC market under the symbol TLOFF. The Tamarack Nickel Project comprises a large land
position (18km of strike length) with high-grade intercepts
outside the current resource area
. Talon has
an earn-in right to acquire up to 60% of the Tamarack Nickel Project, and currently owns 51%. Talon is
focused on (i) expanding and infilling its current high-grade nickel mineralization resource prepared in
accordance with NI 43-101 to shape a mine plan for submission to Minnesota regulators, (ii) following up
on additional high-grade nickel mineralization in the Tamarack Intrusive Complex, and (iii) exploring the
prospects for significant carbon storage in the ultra-mafic rocks that comprise the Tamarack Intrusive
Complex through carbon mineralization.
Talon has an agreement with Tesla Inc.
to supply it with 75,000
metric tonnes (165 million lbs) of nickel in concentrate (and certain by-products, including cobalt and
iron) from the Tamarack Nickel Project over an estimated six-year period once commercial production is
achieved. Talon has well-qualified experienced exploration, mine development, external affairs and mine
permitting teams.
For additional information on Talon, please visit the Company's website at
www.talonmetals.com
/
Media Contact:
Todd Malan
1 (202) 714-8187
Investor Contact:
Sean Werger
1 (416) 500-9891
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements". All statements, other than statements
of historical fact that address activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future are forward-looking statements. These forward-looking
statements reflect the current expectations or beliefs of the Company based on information currently
available to the Company. Such forward-looking statements include statements relating to exploration
and development of the Tamarack Project, including future supply from the Tamarack Project, and the
future value of the royalty and its impact on shareholder value. Forward-looking statements are subject to
significant risks and uncertainties and other factors that could cause the actual results to differ materially
from those discussed in the forward-looking statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will have the expected consequences to, or
effects on the Company.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be
required by applicable securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent uncertainty therein.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/113897