TORONTO, June 13, 2013 /CNW/ - 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
(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
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
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.
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 x247