TSX:TLO
ROAD TOWN, Tortola, British Virgin
Islands, March 31, 2015 /CNW/
- Talon Metals Corp., ("Talon" or the "Company") (TSX: TLO)
reported a net loss for the year ended December 31, 2014 of $17.2
million or $0.18 per share
(basic and diluted), which was primarily the result of impairment
losses on the Trairão Iron Project and the Inajá South Project, and
to a lesser extent, administration expenses and project evaluation
and due diligence expenses. This compares to a loss of
$7.2 million for the year ended
December 31, 2013 or $0.08 per share (basic and diluted), which was
primarily due to project evaluation and due diligence expenses,
administration expenses and investment losses.
"As a result of a number of factors, including the decline in
the spot and long-term forecast prices of iron ore, as well as the
recent and likely closure of potential off-takers in Brazil, we believe it is prudent to write-down
the carrying value of the Trairão Iron Project from
approximately $18-million to
$4-million," said Vince
Conte, CFO of Talon. "This $14-million non-cash accounting write-down
represents the majority of the net loss we have announced
today. We will continue to monitor iron ore market
conditions, both locally and globally, as we believe that Trairão
can still deliver value to our shareholders."
Capitalized exploration costs and deferred expenditures on the
Tamarack Nickel-Copper-PGE Project for the year ended December 31, 2014 amounted to $9.7 million.
The Company recognized an impairment loss of $14.0 million on the carrying value of the
Trairão Iron Project. The quantum of the impairment loss on
the Trãirao Iron Project was based on the Company's assessment of
the fair value, taking into account various approaches to valuation
including the income, cost and market approaches.
At the beginning of the year, the Company's capitalized
exploration costs and deferred expenditures for the Trairão Iron
Project amounted to $17.6
million. The Company capitalized $0.5 million of exploration costs and deferred
expenditures during the year and, recognized the impairment loss of
$14.0 million, resulting in a
year-end balance of capitalized exploration costs and deferred
expenditures for the Trairão Iron Project of $4.0 million.
Consolidated Audited Financial Statements for the years ended
December 31, 2014 and 2013, together
with Management's Discussion and Analysis and the Company's Annual
Information Form, have been filed on SEDAR and are available at
www.sedar.com.
TAMARACK EXPLORATION UPDATE
The 2015 winter exploration program at the Tamarack
Nickel-Copper-PGE Project (the "Tamarack Project"), which
commenced in January 2015, has been
progressing well, and is in the process of winding down. The
Company looks forward to providing an update shortly as and when
results from the program are received.
Kennecott Exploration Company and Talon have already started
planning for the next phase of exploration at the Tamarack
Project.
About Talon
Talon is a TSX-listed company focused on the exploration and
development of the Tamarack Nickel-Copper-PGE Project in
Minnesota, USA (which comprises
the Tamarack North Project and the Tamarack South Project). The
Company has a well-qualified exploration and mine management team
with extensive experience in project management.
Forward-Looking Statements
This news release contains certain "forward-looking statements".
All statements, other than statements of historical fact that
address activities, events or developments that the
Company believes, expects or anticipates will or may occur in
the future are forward looking statements. These forward-looking
statements reflect the current expectations or beliefs of the
Company based on information currently available to the Company.
Such forward-looking statements include, among other things,
statements relating to the Trairão Project delivering value to the
Company's shareholders and the continued exploration at the
Tamarack Project.
Forward-looking statements are subject to significant risks and
uncertainties and other factors that could cause the actual results
to differ materially from those discussed in the forward-looking
statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, but are not limited
to: changes in commodity prices, including nickel, copper and, as
it relates to the Trairão Project, iron; changes in interest rates;
risks inherent in exploration results, timing and success,
including failure to identify mineral resources or mineral
reserves; inaccurate geological and metallurgical assumptions
(including with respect to the size, grade and recoverability of
mineral reserves and resources); uncertainties relating to the
financing needed to further explore and develop the properties or
to put a mine into production; the costs of commencing production
varying significantly from estimates; unexpected geological
conditions; changes in power prices; unanticipated
operational difficulties (including failure of plant, equipment or
processes to operate in accordance with specifications, cost
escalation, unavailability of materials, equipment and third-party
contractors, inability to obtain or delays in receiving government
or regulatory approvals, industrial disturbances or other job
action, and unanticipated events related to health, safety and
environmental matters); political risk, social unrest, and changes
in general economic conditions or conditions in the financial
markets.
Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to the
inherent uncertainty therein.
SOURCE Talon Metals Corp.
