https://www.miningweekly.com

Talon Metals secures funding to earn stake in US project

27th November 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Mineral exploration company Talon Metals has secured $15-million in funding from private equity firm Resource Capital Fund (RCF), that will allow it to conduct further exploration at the Tamarack nickel/copper/platinum group elements project, in Minnesota, in the US, to earn an 18.45% interest in the project.

Talon would receive $1-million through a private placement subscription for common shares, at a subscription price of C$0.12 apiece and $14-million through an unsecured convertible loan, which would bear interest of 12% a year.

Meanwhile the company also signed an amending agreement and debt settlement agreement with Rio Tinto subsidiary Kennecott Exploration Company, which owns the Tamarack project.

Under the terms of the agreements, Kennecott agreed to forgive the principal amount, $4.5-million, of a previously granted unsecured loan, while it would also defer $2.5-million and $4-million option payments originally due by Talon in June 2015 and June 2016, respectively, until after the earn-in period.

Kennecott would convert the interest payable thereunder into common shares at a conversion price of C$0.09 a common share, which represented a 25% discount to the RCF subscription price. 

Consequently, Talon would no longer have any debts payable to Kennecott.

Once Kennecott had spent the funds advanced by Talon on exploration activities, it would have 180 days to elect whether to proceed with a 81.55/18.45 joint venture on the Tamarack project, or to grant Talon the right to buy Kennecott's interest in the project for $114-million.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 
Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.087 0.125s - 90pq - 2rq
Subscribe Now