Talon Metals grants additional NSR for Tamarack nickel-copper project for US$8M

Talon Metals (TSX: TLO; OTC Pink: TLOFF) announced the sale of a net smelter return royalty to a subsidiary of Triple Flag […]
Drilling at the Tamarack nickel-copper-cobalt project in Minnesota. Image from Talon Metals via YouTube

Talon Metals (TSX: TLO; OTC Pink: TLOFF) announced the sale of a net smelter return royalty to a subsidiary of Triple Flag Precious Metals (TSX: TFPM; NYSE: TFPM), in consideration of a payment of US$8 million ($10.9 million) for an additional 1.67% NSR.

The royalty is payable on the Tamarack nickel-copper-cobalt-precious metals project in Minnesota. The project is a joint venture of operator Talon (51%) and Rio Tinto (ASX: RIO; NYSE: RTP) (49%). To earn an additional 9% interest, for a total of 60%, Talon must complete a feasibility study by March  2026 and pay an additional  US$10 million to Rio Tinto.

In return for its US$8 million investment, Triple Flag has received the additional 1.67% NSR royalty. Talon has also issued to Triple Flag 8 million common share warrants, each exercisable for a period of two years following the closing date of this transaction. Triple Flag can exchange each warrant for a share of Talon at a price of C$0.20.

Talon retains the right to buy-back 0.67% of the royalty for US$5 million, reducing Tripple Flag’s royalty to 1%. Triple Flagg can increase its royalty by an addition 0.50% for US$2 million, an action that would terminate Talon’s buy-back rights.

The Talon deposit contains 8.6 million indicated tonnes grading 1.73% nickel, 0.92% copper, 0.05% cobalt, plus platinum, palladium, and gold. The inferred resource is 8.5 million tonnes at 0.83% nickel, 0.55% copper, 0.02% cobalt, plus precious metals.

More information is posted on www.TalonMetals.com.

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