Talon Metals Enters Agreement To Divest São Jorge Gold Project, Brazil
Jun 15, 2010
Road Town, Tortola, British Virgin Islands (Jun 15, 2010) - Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce that it has concluded an agreement (the “Agreement”) with Brazilian Gold Corporation (“Brazilian Gold”) (TSXV:BGC) whereby Brazilian Gold has been granted an option to purchase a 100% interest in Talon's São Jorge Gold Project (“São Jorge”). São Jorge is a 57,420 hectare project in the TapajÓs Gold District in western ParÁ State, Brazil.
Under the terms of the Agreement, Brazilian Gold is required to pay Talon a total of $2,250,000 in cash and $2,250,000 in Brazilian Gold shares*.
“This agreement significantly advances Talon's stated strategy of realizing value on its gold projects,” said Mr. Stuart Comline, President and CEO of Talon. “We intend to use the proceeds from this transaction for the further development of our other mineral exploration projects.”
Brazilian Gold is required to make an initial payment of $1 million in cash and $500,000 in Brazilian Gold shares. Brazilian Gold is required to make additional payments of $500,000 in cash and $1,000,000 in shares 270 days after the closing date. A final payment of $750,000 in cash and $750,000 in shares is due 540 days after the closing date.
The above Agreement is subject to a 1% net smelter return royalty payable to Talon upon commencement of commercial production.
The closing date is expected to be on or before August 31, 2010. This transaction is subject to any approvals required under the rules of the Toronto Stock Exchange and applicable corporate law.
*Calculated as the number of Brazilian Gold shares equal to the dollar amount divided by the twenty day volume-weighted average trading price of Brazilian Gold shares.
Talon is a TSX-listed company focused on the acquisition, exploration and development of the Trairão Iron Project in ParÁ State, Brazil. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.
Talon has a treasury of approximately $3.4 million and has 63,877,950 common shares outstanding and 70,517,450 shares fully diluted.
For additional information on Talon please visit the Company's website at www.talonmetals.com or contact:
This press release contains certain “forward-looking information”. All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information reflects the current expectations or beliefs of Talon based on information currently available to Talon. Such forward-looking information includes, among other things, statements relating to the Agreement and Talon's use of the proceeds received thereunder, the closing date of the transaction with Brazilian Gold, the payment obligations of Brazilian Gold under the Agreement and Talon's entitlement to a net smelter royalty under the Agreement.
Forward-looking information is 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 information, 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. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: Brazilian Gold's intentions in respect of São Jorge and its obligations under the Agreement; Brazilian Gold's financial condition and the results of exploration at São Jorge; delay in, or failure of, Brazilian Gold to comply in all material respects with the terms and conditions of the Agreement; delay or failure to obtain any approvals required under the rules of the Toronto Stock Exchange and applicable corporate law; changes in mineral prices; declines in U.S., Canadian and/or global economies; political developments in Brazil and southern Africa; volatility in prices of publicly traded securities; changes in exchange rates; changes to regulations affecting the Company's activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; the uncertainties involved in interpreting drilling results and other geological data; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company's projects; delays in the exploration and development of, and/or commercial production from, the properties in which Talon has an interest; success of future exploration and development initiatives; and other risks involved in the natural resource exploration and development industry.
Forward looking information 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 forward-looking information, whether as a result of buy . Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.