Talon Metals announces effective date for the distribution of Rio Verde shares
ROAD TOWN, Tortola, British Virgin Islands, July 20, 2011 /CNW/ --
Talon receives second option payment for the São Jorge Gold Project
TSX:TLO
ROAD TOWN, Tortola, British Virgin Islands, July 20, 2011 /CNW/ - Talon
Metals Corp., ('Talon' or the 'Company') (TSX: TLO) is pleased to
announce that on July 8, 2011 the Eastern Caribbean Supreme Court
(Virgin Islands) granted the final order approving the distribution of
Rio Verde Minerals Development Corporation ('Rio Verde') shares to
Talon shareholders (the 'RV Distribution') pursuant to the Plan of
Arrangement involving Talon, Rio Verde Minerals Corporation, EM
Resources Inc. (a reporting issuer in Ontario) and a subsidiary of EM
Resources Inc. Under the Plan of Arrangement, Rio Verde Minerals
Development Corporation will be the name of the resulting entity which
is expected to be listed and trading on the Toronto Stock Exchange (the
'TSX') under the symbol 'RVD'. The TSX has conditionally approved the
listing of the Rio Verde shares.
The 'effective date' of the RV Distribution is expected to be on or
about July 28, 2011. Talon shareholders will receive shares in Rio Verde on the basis of one
ordinary share of Rio Verde for every four common shares of Talon. The
RV Distribution shares will be subject to a six month hold period as
required by the syndicate of brokers for Rio Verde's recently completed
equity financing.
The RV Distribution Shares are expected to be delivered to Talon's
shareholders by Talon's transfer agent, Computershare Investor Services
Inc., and other intermediaries within 10 business days following their
issuance.
São Jorge Gold Project
Talon is also pleased to announce that it has received the second option
payment in respect of the São Jorge Gold Project ('São Jorge') from
Brazilian Gold Corporation ('Brazilian Gold') (TSXV:BGC).
In order to preserve its rights to exercise the option for São Jorge, on
July 5, Brazilian Gold made a payment to Talon of C$500,000 in cash and
C$1,000,000 in Brazilian Gold shares; such amount equating to 897,961
Brazilian Gold shares calculated based on the twenty day VWAP preceding
the payment date.
A final payment of C$750,000 in cash and C$750,000 in Brazilian Gold
shares may be made by May 2012 for Brazilian Gold to exercise the
option on São Jorge.
About Talon
Talon is a TSX-listed company focused on the exploration and development
of its 100% owned Trairão Iron Project in Pará State, Brazil. The
Company has a well-qualified exploration and management team with
extensive experience in exploration and project management.
Talon has approximately 91.7 million common shares outstanding and
approximately 107.6 million shares on a fully diluted basis.
Forward-Looking Statements
This news release contains certain 'forward-looking information'. All
information, other than information pertaining to historical fact,
which addresses activities, events or developments that Talon believes,
expects or anticipates will or may occur in the future constitutes
forward-looking information. Forward-looking information reflects the
current expectations or beliefs of Talon based on information currently
available to Talon. Such forward-looking information includes, without
limitation, the completion of the final payment of cash and Brazilian
Gold shares in respect of the option for São Jorge, the completion and
proposed terms of the RV Distribution and timing related thereto; and
the anticipated effect of the RV Distribution on shareholder value.
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For additional 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