Talon Metals made initial payment to Kennecott

Talon Metals Corp. announced that Talon Nickel (USA) LLC has made the initial upfront payment to Kennecott Exploration Company, in the amount of US$6 million. The BVI company also issued 25,031,250 common shares to Kennecott, representing US$1.5 million worth of common shares at C$0.08 per share, based on the further requirement under the Option Agreement.

Kennecott Exploration, which is a subsidiary of the Rio Tinto Group, now owns 7.4% of Talon on a partially diluted basis. Under the terms of the Option Agreement, Talon now has the right to acquire up to 60% interest in the Tamarack Project. President of Talon said in his comments: "This is the beginning of exciting times ahead for the Company. We look forward to working in conjunction with our partner, Kennecott, to advance the Tamarack Project, with a strategy of producing Class 1 nickel, as well as copper and cobalt, for the electric vehicle and stationary battery market."

BVI corporation announced extension agreement with Kennecott

BVI-registered Talon Metals Corp. made an announcement that its wholly owned indirect subsidiary Talon Nickel (USA) LLC entered into an extension agreement in respect of the option agreement which was signed with Kennecott Exploration Company in November 2018.

Under the terms of the Extension Agreement, the BVI company has to make initial payment to Kennecott in the amount of US$6mln until March 15, 2019, in order to make the Option Agreement effective. In this case, Talon Metals will have the right to acquire up to 60% interest in the Tamarack Project. In case the company fails to make the payment to Kennecott, the parties will enter into a joint venture agreement under which Kennecott would have an initial 82.44% interest and Talon would have an initial 17.56% interest in the Tamarack Project.