In return for its $8 million investment, Triple Flag will receive an additional 1.67% NSR royalty on the project. Talon will also issue 8 million common share warrants, each exercisable by Triple Flag for a period of two years at a price of C$0.20.
Talon retains the right to buy back the royalty for $5 million and reduce Triple Flag’s royalty to 1%. Triple Flag can also increase its royalty by an additional 0.5% for $2 million, and this would terminate Talon’s buyback 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.
