Talon-Rio Tinto Deal Structure

  • The Tamarack Project is comprised of the Tamarack North Project and the Tamarack South Project with approximately 31,000 acres of Private Land and State Leases
  • To earn a 51% interest in the Tamarack Project, Talon is required to (by March 2022):
  • Pay US$6 million in cash and US$1.5 million in shares to Rio Tinto (completed in March 2019);
  • Spend US$10 million on exploration & development (As of September 30, 2020, US$8 million has been spent) and pay US$5 million to Rio Tinto
  • To earn an additional 9% interest for a total of 60% (by March 2026):
  • Complete a feasibility study and pay US$10 million to Rio Tinto
  • Under the Option Agreement, Talon is appointed as the operator of the Tamarack Project, with total control over future exploration strategy
  • After Talon owns 60%, Rio Tinto must fund their 40% interest, or dilute; Rio Tinto has no back-in rights; Talon controls 100% of the off-take (to whom the product is sold)