ROAD TOWN, Tortola, British Virgin Islands, March 14, 2013 /CNW/ - Talon Metals Corp. ("Talon" or the "Company") (TSX: TLO) is pleased to announce to its shareholders that Rio Verde Minerals Development Corp.'s ("Rio Verde") (TSX: RVD) previously announced acquisition by a wholly-owned subsidiary of B&A Mineração S.A. for C$0.40 per share of Rio Verde has closed.
- Talon spent approximately C$1.9 million on the Sergipe Potash Project prior to the sale of the project to Rio Verde in December 2010;
- In December 2010, Talon received approximately 27 million Rio Verde shares for the sale of the Sergipe Potash Project, which equates to approximately $0.07 of expenditure on the Sergipe Potash Project per Rio Verde share;
- In July 2011, Talon distributed most of its Rio Verde shares to Talon shareholders;
- Talon shareholders who have retained their shares in Rio Verde will receive C$0.40 in cash per share.
"Talon is pleased to have been able to create in excess of five times value for its shareholders through the distribution of Rio Verde shares to its shareholders", said Sean Werger, President of Talon. "We are always looking for ways to create additional value for our shareholders, and anticipate that our current holdings in companies such as Tlou Energy Limited and Brazilian Gold Corporation will also result in value creation for the Company in the near future."
In December 2010, Talon sold the Sergipe Potash Project to Rio Verde in return for approximately 27 million shares of Rio Verde. Up to that point, Talon had invested approximately C$1.9 million in developing the project. Talon shareholders are reminded that on July 27, 2011, just prior to Rio Verde's listing on the Toronto Stock Exchange, Talon distributed most of its shares of Rio Verde to Talon shareholders on the basis of one Rio Verde share for every four shares of Talon held by each Talon shareholder on that date (see Talon's press release dated July 21, 2011 entitled "Talon Metals Confirms Effective Date for the Distribution of Rio Verde Shares").
For further information, please refer to Rio Verde's news release issued yesterday entitled "Acquisition of Rio Verde by B&A Mineração Completed" and its news release dated March 6, 2013 entitled "Rio Verde Shareholders Approve Merger with Wholly-Owned Subsidiary of B&A Mineração S.A.", both of which are available at www.rvminerals.com and on SEDAR 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 project management.
Talon has approximately 92 million common shares outstanding and approximately 105 million shares on a fully diluted basis.
SOURCE: Talon Metals Corp.
For further information:
Please visit the Company's website at www.talonmetals.com or contact:
Talon Metals Corp.
Tel: (416) 361-9636 x 247
Email: [email protected]