Talon Metals announces extension on loan to Saber Energy on positive corporate developments


    ROAD TOWN, Tortola, British Virgin Islands, April 24 /CNW/ - Talon Metals
Corp., ("Talon" or the "Company") (TSX: TLO) today announces a further six
month extension on the maturity date of Talon's $6 million loan to Saber
Energy Corp ("Saber"). The revised maturity date of the loan is October 31,
2009. This loan is part of the binding Heads of Agreement entered into by
Saber and Talon on September 25, 2008 (the "Heads of Agreement") regarding a
potential merger of the two companies.
    This second extension of the loan maturity date is based on today's news
that Saber has signed a Heads of Agreement with Tlou Energy ("Tlou") to
conduct further exploration on Saber's Coal Bed Methane ("CBM") properties in
Botswana. Tlou is a 50-50 joint venture between Mitchell Energy Group
("Mitchell") and Walcot Capital ("Walcot"). Mitchell and Walcot are leaders in
exploration and development of CBM projects in Australia. These exploration
programs will be funded to the "proof of concept" stage solely by Tlou. In
return, Tlou will earn an ownership position in various companies that hold
the Botswana land licences.
    "We are pleased that Saber has a strategic joint venture partner that
will fund exploration of its CBM properties in Botswana to proof of concept
and believe that, with Tlou's expertise, Saber's exploration program will be
enhanced," said Mr. Stuart Comline, President and CEO of Talon."
    Also under the loan extension agreement, Saber is required to make
principal repayments should it raise funds through the sale of assets or
financing activities prior to the loan maturity date. Interest on the loan
will be payable at a rate of 18% per annum for the first three months of the
loan extension period, and at 25% per annum on the second three months of the
loan extension period. The loan is secured against Saber's assets; namely its
land licenses in Botswana and equipment.
    In addition, Talon will receive three million common share purchase
warrants of Saber under the loan extension agreement. These warrants are in
addition to the three million warrants Talon received under the 2008 Heads of
    Talon's exclusive right to enter into a merger with Saber has also been
extended until April 30, 2010. Talon's due diligence review of Saber regarding
a potential merger of the two companies remains ongoing.
    Saber is a private CBM exploration company focused on developing a CBM
and shale gas field in the Karoo Basin in Botswana, Africa.
    In addition, Talon is continuing to investigate other acquisition
opportunities in the resources sector. Several due diligence reviews are
currently underway on significant strategic resource opportunities.

    About Talon

    Talon is a TSX-listed company focused on the acquisition, exploration and
advancement 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$7 million and holds 2,450,000
common shares in Beadell Resources Limited (ASX:BDR). Talon has 27,054,222
common shares outstanding.

    About Tlou Energy

    Tlou Energy is a 50-50 joint venture between Mitchell Energy Group and
Walcot Capital. Together the two companies provide a wealth of technical,
drilling, operating and commercial experience in CBM projects globally.

    Mitchell Energy Group was formed from Mitchell Drilling, a specialized
drilling company whose surface to in-seam drilling technology helped
revolutionize the Australian CBM industry. Today Mitchell Energy Group is an
integrated contractor offering a full range of drilling services on a global
basis. www.mitchellenergygroup.com

    Walcot Capital is a Brisbane based private venture capital business
specializing in energy investment. Walcot Capital's capabilities extend across
technical, commercial and legal fields of the energy sector with its
principals having founded and developed successful CBM companies in both
Australia and New Zealand.

    Forward-Looking Statements

    This press release contains certain "forward-looking statements". All
statements, other than statements of historical fact, that address activities,
events or developments that Talon believes, expects or anticipates will or may
occur in the future are forward-looking statements, including, without
limitation, statements regarding Talon's plans and objectives, the $6 million
interim loan to Saber and the extension of the maturity date thereof, the
potential merger of Talon and Saber (the "Merger", with the company resulting
from such Merger being hereinafter referred to as "MergeCo"), the continuation
of Talon's due diligence review of Saber, the entry by Saber and Tlou into a
heads of agreement, the proposed conduct and funding by Tlou of further
exploration on Saber's CBM properties in Botswana to the "proof of concept"
stage, and the proposed earn-in by Tlou of an ownership position in various
companies that hold the Botswana land licences. These forward-looking
statements reflect the current expectations or beliefs of Talon based on
information currently available to Talon. Forward-looking statements are
subject to a number of risks and uncertainties that may cause the actual
results of Talon to differ materially from those discussed in the
forward-looking statements, 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 Talon. Factors that could cause actual
results or events to differ materially from current expectations include,
among other things: the failure of such further exploration by Tlou to yield
positive results; the failure of Talon and Saber (together, the "Companies")
to reach agreement and to execute a pre-Merger agreement; the failure of the
Companies to complete the Merger; Saber failing to repay the interim loan from
Talon and interest thereon; volatility of and sensitivity to market prices for
gas and prices (market or otherwise) for electricity; changes in the
anticipated demand for electricity in southern Africa; changes in equity and
debt markets; inflation; changes in exchange rates; uncertainties relating to
the availability and costs of financing needed to complete exploration
activities, demonstrate the feasibility of the gas reserve and to develop
Saber's proposed 1,000 megawatt power plant (the "Power Project"); the ability
of Saber and/or MergeCo (as well as any joint venture with Tlou) to conclude
power purchase agreements with the intended offtakers of the Power Project;
exploration costs varying significantly from estimates; delays in the
exploration and development of, and/or commercial production from, the Power
Project and the properties Saber has an interest in; inability to commercially
exploit the resources of the Power Project or the areas covered by Saber's
prospecting licences, including the production of downstream products such as
petrochemicals; inability to secure and produce sufficient water to support
gas production; actual gas usage varying from assumptions; inability to, or
delays in, procuring the engineering, procurement and construction contract,
labour, capital equipment and/or operating parts and supplies required for the
Power Project; equipment failure; unexpected geological or hydrological
conditions; political risks arising from operating in Africa; imprecision in
preliminary resource estimates, including estimates of the life and recovery
thereof; success of future exploration and development initiatives; inability
to establish the minimum amount and quality of reserves required to support
the proposed Power Project; competition; operating performance of facilities;
environmental and safety risks, including increased regulatory burdens,
seismic activity, weather and other natural phenomena; inability to, or delays
in, obtaining necessary permits and approvals from government authorities,
including approval of environmental impact assessment applications; the
existence of undetected or unregistered interests or claims, whether in
contract or in tort, over the property of Saber and/or MergeCo, respectively;
failure to acquire interests in prospecting licences that Saber currently has
an interest in; changes in government regulations and policies, including tax
and trade laws and policies; risks relating to labour; and other exploration,
development and operating risks.
    Any forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable laws, Talon disclaims any
intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise. Although
Talon believes that the assumptions inherent in the forward-looking statements
are reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein. Information pertaining to
Saber has been furnished by Saber. Although Talon does not have any knowledge
that would indicate that any such information is untrue or incomplete, Talon
assumes no responsibility for the accuracy or completeness of such

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: ebelling@taucapital.com

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