Talon Metals (TSX:TLO) reported the completion of its financing transactions with Resource Capital Fund VI and Kennecott Exploration Company, a subsidiary of the Rio Tinto group. Talon received Us$15 million from Resource Capital, to be used to earn an 18.45 percent interest in the Tamarack nickel project in Minnesota.
As quoted in the press release:
In order to enable the Closing of the RCF Financing, earlier today, the Company held a special meeting of its shareholders during which the shareholders of the Company approved the issuance by the Company to:
- RCF of 11,540,833 common shares of the Company (“Common Shares“) in connection with a private placement of the Company to RCF for gross proceeds of US$1 million (the “RCF Private Placement“), and up to 232,000,000 Common Shares in connection with a convertible loan in the principal amount of US$14 million provided to Talon by RCF (the “RCF Loan“);
- Kennecott of 5,236,717 Common Shares in satisfaction of interest owing to Kennecott pursuant to an unsecured loan previously granted to Talon by Kennecott and the terms of a prior amendment to an exploration and option agreement between Talon and Kennecott; and
- Haywood Securities Inc. (“Haywood“) of 3,325,250 Common Shares and 1,000,000 Common Share purchase warrants in satisfaction of Haywood’s efforts in facilitating the RCF Private Placement and the RCF Loan.
During the special meeting, Talon shareholders also approved: (i) the issuance of 1,875,000 common shares to Mr. Warren Newfield, the Executive Chairman of Talon, in consideration of his agreement to enter into an amended and restated consulting agreement under which Mr. Newfield agreed to defer and reduce his annual compensation and reduce his entitlement to a termination payment; and (ii) the repricing of the exercise price (to $0.156) and extension of the term (to November 25, 2020) of stock options to purchase a total of 9,615,000 common shares held by directors and officers under the Company’s stock option plan.
Talon also announces the resignation of Mr. Jeff Rassuchine from the board of directors of the Company.
“We sincerely thank Jeff for his dedicated service to the Company,” said Henri van Rooyen, CEO of the Company. “Under the terms of the RCF Financing, RCF has the right to nominate one individual to serve on the Company’s board of directors, and the voluntary resignation by Jeff simply makes way for such future nomination by RCF.”
Talon CEO, Henri van Rooyen, said:
The completion of the RCF Financing is a major milestone for our Company. and we are now one of the few junior exploration companies that is fully funded with the ability to progress exploration on an expedited basis. On behalf of Talon, I would like to thank our shareholders for their overwhelming support and encouragement. The Talon team is already hard at work in conjunction with Kennecott planning the next phase of exploration at the Tamarack Project. We expect the next exploration program to commence in January 2016. We look forward to updating shareholders as we progress.
The post Talon Metals Secures Approval and Financing to Earn an Interest in Tamarack appeared first on Investing News Network.