Talon Metals Corp revealed that it has bolstered its interest in the world-class Tamarack nickel project in Minnesota, by reducing an existing net smelter returns royalty (NSR) on its share of the asset to 1.85% from 3.5% for US$4.5 million in cash.
The company said it has struck an amending agreement with TF R&S Canada Ltd, a subsidiary of Triple Flag Precious Metals Corp, to effect the early exercise of its right to reduce the royalty.
Sean Werger, Talon's president, said the move was "another important step" towards taking Talon to the next level, following the company's recent supply agreement with electric vehicle (EV) titan Tesla, remarkable drill results and successful capital raise to strengthen its balance sheet
"Shaun Usmar and the Triple Flag team were one of the first investors to recognize the world-class nature of the Tamarack Nickel Project when we struck the royalty agreement in 2019. Our agreement today demonstrates that they are not just good investors but true partners in the companies in which they invest," Werger added in a statement.
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Usmar, the CEO of Triple Flag, commented: "We are proud to have partnered with Talon at an early stage to enable them to acquire their interest in the Tamarack nickel project from Rio Tinto."
Talon is in a joint venture with mining giant Rio on the Tamarack project, which has 18 kilometres of strike, and has an earn-in to acquire up to 60% of the asset. It currently owns 51%.
The company is focused on expanding and infilling the current high-grade NI 43 101 resource to shape a mine plan for Minnesota regulators, following up on additional high-grade nickel mineralization in the Tamarack Intrusive Complex, and exploring the prospects for significant carbon storage in the ultra-mafic rocks that comprise the Tamarack Intrusive Complex.
It has an agreement with Tesla Inc (NASDAQ:TSLA) to supply it with 75,000 metric tonnes (165 million pounds) of nickel in concentrate (and certain by-products, including cobalt and iron) from the property over an estimated six-year period once commercial production is achieved.
Contact the author at giles@proactiveinvestors.com