ROAD TOWN, Tortola, British Virgin Islands, Feb. 12 /CNW/ - Talon Metals Corp., ("Talon" or the "Company") (TSX: TLO) is pleased to announce that it has concluded an agreement (the "Agreement") with Gungnir Resources Inc. ("Gungnir") whereby Gungnir has been granted an option to earn up to a 75% interest in Talon's Juruena Gold Project ("Juruena"). Juruena is a 25,150 hectare (62,147 acre) project located in the northern Mato Grosso State, Brazil.
Under the terms of the Agreement, Gungnir is required to make an initial payment of US$150,000.
In order to exercise its option, Gungnir is required to make additional payments of US$300,000 on or before February 11, 2011, US$350,000 on or before February 11, 2012, US$450,000 on or before February 11, 2013 and US$500,000 on or before February 11, 2014, for a total option payment to Talon of US$1.75 million.
In addition, Gungnir is required to complete an exploration program and a feasibility study, at their cost, on or before December 31, 2014. Subject to certain conditions, the deadline for the feasibility study may be extended to December 31, 2016. On Gungnir fulfilling all the terms of the Agreement, Talon will retain a 25% interest in Juruena.
Prior to completing the feasibility study, Gungnir may acquire a 51% interest in Juruena by spending at least US$15 million on exploration activities on the project and making any remaining option payments to Talon.
Sale of holding in Beadell Resources
In the past month Talon has sold its 2,450,000 common shares of Beadell Resources Limited (ASX: BDR) for gross proceeds of approximately CDN$711,000. These funds will be used to fund Talon's exploration programs.
Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality mineral resource projects. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.
Talon has a treasury of approximately CDN$4.7 million. Talon has 27,054,222 common shares outstanding and 30,239,222 shares fully diluted.
SOURCE Talon Metals Corp.
For further information: For further information: on Talon please visit the Company's website at www.talonmetals.com or contact: Erica Belling, VP Investor Relations, Tau Capital Corp., Tel: (416) 361-9636 x 243, Email: email@example.com