ROAD TOWN, Tortola, British Virgin Islands, March 22, 2013 /CNW/ - Talon
Metals Corp., ("Talon" or the "Company") (TSX: TLO) reported a net loss
from continuing operations and a net loss for the year ended December
31, 2012 of $18.4 million or $0.20 per share - basic and diluted, which
includes an impairment loss of $11.2 million on its investment in Tlou
Energy Limited ("Tlou Energy") and the Company's share of loss in Tlou
Energy of $2.3 million (2011: net loss from continuing operations of
$13.8 million or $0.16 per share - basic and diluted and net loss of
$4.9 million or $0.06 per share - basic and diluted).
Capitalized exploration cost on the Trairão Iron Project for the year
amounted to $2.6 million. This compares to $13.5 million for the year
ended December 31, 2011. The total capitalized exploration cost on the
Trairão Iron Project to December 31, 2012 amounts to $16.6 million.
The Company recognized an impairment loss of $11.2 million on its
investment shareholding in Tlou Energy, an unlisted public Australian
based coal bed methane exploration company. Talon acquired the
majority of its shares in Tlou Energy when it sold its interest in the
Botswana CBM Project to Tlou Energy in November 2010.
The impairment loss was based on the Company's assessment of the fair
value of its interest in Tlou Energy, taking into account various
approaches to valuation, including the income, cost and market
approaches, but primarily the market approach. The write-down was
based on a number of factors, including discussions management had with
market participants in connection with the price at which Tlou Energy
might raise capital in the near term and the general challenging market
conditions associated with the ability for junior exploration companies
to raise capital.
At the beginning of the year, the Company's investment in Tlou Energy
amounted to $19.6 million. The recognition of the impairment loss of
$11.2 million, together with the Company's share of loss in Tlou Energy
of $2.3 million for the year, results in a balance for the Company's
investment in Tlou Energy at December 31, 2012 of $6.1 million.
Consolidated Audited Financial Statements for the years ended December
31, 2012 and 2011, together with Management's Discussion and Analysis
and the Company's Annual Information Form, have been filed on SEDAR and
are available at www.sedar.com.
Talon is a TSX-listed company focused on the exploration and development
of its iron projects in Brazil. The Company has a well-qualified
exploration and mine management team with extensive experience in
SOURCE: Talon Metals Corp.
For further information:
For additional information on Talon please visit the Company's website at www.talonmetals.com or contact:
Talon Metals Corp.
Tel: (416) 361-9636 x 247