Talon concludes agreement with Lara Exploration to acquire interest in potash
properties in Brazil
TSX:TLO
ROAD TOWN, Tortola,
Lara's potash licences comprise two separate blocks, with a total area of 14,114 hectares (34,876 acres), which are contiguous with Talon's Capela and Panqueca potash prospects, and cover the strike extension trend of the known potash deposits in Vale's Taquari-Vassouras Mine (Figure 1). With this Agreement, Talon will have interests in exploration licences that cover a cumulative area of 29,163 hectares (72,063 acres) immediately north and north east of the Taquari-Vassouras mine boundary. In addition Talon has holdings south of Vale's potash mine and in other locations in the Sergipe Basin which total 46,256 hectares (114,300 acres).
Lara's western block comprises two exploration licences (for a total of 3,618 hectares), adjacent to Talon's Capela prospect. Lara's eastern block comprises six exploration licences (for a total of 10,496 hectares) adjacent to Talon's Panqueca prospect. Lara also has five applications pending for potash exploration licences which total 7,574 hectares (18,715 acres) covering north eastern extensions to Talon's Panqueca prospect.
"We are delighted to conclude this Agreement with Lara, as the combining of the two companies' exploration licences represents a major consolidation of potash exploration ground on the northern and northern eastern boundary of Vale's Taquari-Vassouras mine, the only operating potash mine in
Under the terms of the Agreement with Lara, Talon has a right to acquire a 75% interest in a Brazilian company to be formed, which will hold all of Lara's potash exploration licences. To exercise its option, Talon must make cash payments of US$0.5 million, as well as undertake a US$4 million work program to be managed and funded by Talon. Both the cash payments and work commitments are on an annual basis, spread over four years. The work program includes the drilling of a minimum of five holes over four years. In addition, Talon is required to complete a Resource Report on these licence areas by late 2014.
A significant amount of exploration data is available on Lara's licences from the oil and gas industry, which includes geological and geophysical data from 11 oil wells. Two of these wells intersected a cumulative 37 and 5 metres of potash mineralization respectively, in ten and two individual potash-bearing horizons, at depths between 1,300 and 1,800 metres. Furthermore, data is available for at least 30 2-D seismic lines over Lara's properties. Talon will acquire this data and conduct a detailed interpretation, in an effort to delineate the basin structure as well as any potash deposits, with the aim of identifying further drill targets.
Talon's Gold Projects - Strategy
Talon has previously stated that it would look for partners for its gold projects that do not meet the Company's strategic target parameters, in an effort to realize optimum value on these projects. The Company is currently in negotiations with third parties on a number of its gold projects.
About Talon
Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality 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$4.5 million and holds 2,450,000 common shares in Beadell Resources Limited (ASX:BDR). Talon has 27,054,222 common shares outstanding and 30,239,222 shares fully diluted.
Forward Looking Statements -------------------------------------------------------------------------
This news release contains certain "forward-looking information". All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information reflects the current expectations or beliefs of Talon based on information currently available to Talon. Such forward-looking information includes, among other things, statements relating to the Agreement, the acquisition of an interest in Lara's potash exploration licences, pending potash exploration licences and Talon's proposed potash exploration program. Forward-looking information is subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: changes in potash prices; political developments in
Figure 1: Talon's and Lara's potash properties in the Sergipe Basin,
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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 protected]
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