R/€ = 15.99 Change: -0.02
R/$ = 14.01 Change: -0.03
Au 1221.51 $/oz Change: 6.02
Pt 845.50 $/oz Change: 3.71
 
 
R/€ = 15.99 Change: -0.02
R/$ = 14.01 Change: -0.03
Au 1221.51 $/oz Change: 6.02
Pt 845.50 $/oz Change: 3.71
 
 
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Talon has another go at Tamarack project

8th November 2018 BY: Creamer Media Reporter

A year after declining an option to purchase the Tamarak project in Minnesota, US, from Rio Tinto subsidiary Kennecott Exploration Company, Canadian firm Talon Metals has now entered into a new agreement to gain a controlling stake in the nickel/copper project.

The TSX-listed junior has entered into an option agreement with Kennecott to acquire up to a 60% interest in the project, which Talon president Sean Werger says is one of the world’s only remaining undeveloped high-grade nickel/copper/cobalt on infrastructure.

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Talon already owns a 17.56% interest in Tamarack, which the company aims to develop as a Class 1 nickel producer, supplying the electric vehicle battery market.

“It is a tremendous stamp of approval to have Kennecott maintain a significant stake in Tamarack and for Resource Capital Fund VI (RCF4) to convert all of its debt into common shares of Talon,” said Werger.

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Following the completion of the RCF debt conversion, Talon will be a debt-free company.

Pursuant to the terms of the option agreement, Talon will immediately take over ownership of the Tamarack project and will have the right to acquire a 51% interest upon a $6-million cash payment and the issuance of $1.5-million worth of common shares.

Within three years of the effective date of the option agreement, Talon either has to spend $10-million or complete a prefeasibility study and it has to pay an additional $5-million in cash.

In November last year, Talon elected not to exercise its option agreement to acquire 100% in Tamarack for $114-million. 

EDITED BY: Mariaan Webb Creamer Media Senior Researcher and Deputy Editor Online
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