Talon Metals Provides Update On Investments
Road Town, Tortola, British Virgin Islands (June 13, 2013) - Talon Metals Corp. (“Talon” or the “Company”) (TSX: TLO) is pleased to provide an update on a number of its passive investments in other publicly traded companies.
“As a result of historical dispositions by Talon of certain non-material projects, Talon has a number of meaningful investments in various publicly listed companies”, said Sean Werger, President of Talon. “We believe that our current treasury of approximately CDN$16.5-million, coupled with these additional investments in other publicly listed companies, puts us in a good position to successfully implement our strategy of pursuing projects that can generate meaningful cash flow with low capital requirements.”
SUMMARY OF TALON'S INVESTMENTS
(1) Tlou Energy Limited (ASX:TOU)
Tlou Energy is an Australian company focused on the identification and development of unconventional gas opportunities throughout southern Africa. On April 9, 2013, Tlou Energy successfully completed an initial public offering on the Australian Securities Exchange (“ASX”). In conjunction with its listing, Tlou Energy raised AUS$10,000,000 at AUS$0.50 per Tlou Energy share.
Talon currently owns 16,857,142 shares in Tlou Energy, of which 2,571,428 shares are free trading, with the remaining shares being subject to an ASX-mandated escrow until April 9, 2015 (the “ASX Escrow”). Talon also has an option to acquire up to an additional 4,945,055 Tlou Energy shares at AUS$1.25 per share on or before May 9, 2015 (subject to the ASX Escrow having expired prior to any exercise taking place).
(2) Brazilian Gold Corporation (TSX.V:BGC)
Brazilian Gold is a Canadian-based public company with a focus on the acquisition, exploration and development of gold properties located in Northern Brazil. Brazilian Gold has title to a large mineral exploration land package in the TapajÓs and adjacent Alta Floresta gold provinces. The land package contains green fields to more advanced stage projects, including Brazilian Gold's flagship São Jorge project. Recently, on May 30, 2013, Brazilian Gold announced that it has signed an indicative, non-binding and conditional letter of intent with Kingwell Group Limited, pursuant to which Kingwell may make a general cash offer to the shareholders of Brazilian Gold for not less than 50.95% of the outstanding common shares of BGC at a price of CDN$0.27 per share.
Talon currently owns 3,191,489 shares in Brazilian Gold, along with a 1% Net Smelter Return (“NSR”) royalty in Brazilian Gold's São Jorge project and a 2% NSR royalty in Brazilian Gold's Batistão project (subject to a US$1-million buy-back right by Brazilian Gold).
(3) Resource Generation Limited (ASX:RES)
Resource Generation is developing the Boikarabelo coal mine in the Waterberg region of South Africa, with a 30 year mining right having already been issued to Resource Generation and advanced project financing discussions underway.
Talon currently owns a royalty of ZAR2 (two South African Rand) per tonne of coal extracted and sold from the area covered by Mining Right MPT 15/2012 MR at the Boikarabelo coal mine. This royalty is capped at ZAR30-million (approximately CDN$3-million), and must be paid to Talon within 6 years of the commencement of coal production from the license area.
Talon is a TSX-listed company focused on the exploration and development of the Trairão Iron Project in Brazil. The Company has approximately CDN$16.5-million in cash and a well-qualified exploration and mine management team with extensive experience in project management.
For additional information on Talon please visit the Company's website at www.talonmetals.com or contact: