Talon Metals Corp. announced that it has signed a binding Letter of Interest with Sagitario Servicos Minerais S/C Ltda, for the acquisition of a 100% interest in the Barra do Franca Gold Project, which is located in Piaui State in the northeastern region of Brazil.
The BVI-domiciled corporation is planning to prospect the area to assess the potential of the known gold mineralisation as a bulk mineable near surface target. In terms of the agreement, Talon must pay US$15,000 to secure the option on the Project and conduct a due diligence review (this payment has already been made). It will also pay US$85,000 on May 11, 2008, and US$150,000 on February 11,2009 to acquire a 100% interest in the Project. Sagitario will retain a royalty of 1% net smelter return that can be acquired by Talon at any time, through the payment of US$500,000.
Barra do Franca Gold Project will be managed and operated by Brazmin Ltda – a Brazilia-based subsidiary of Talon. The Project is located in the southeastern part of the State of Piaui. The Project is in an area with reasonable infrastructure and consists of an Exploration License of approximately 893 hectares.
Subsequent to the Letter of Interest, Talon has independently applied for and been granted mineral rights to an additional 7,864 hectares in four Exploration Licenses that cover the eastern and western strike extensions to the mineralized zone in the Project. Talon has undertaken further exploration to identify the priority targets in the mineralized zone; the results are expected in March. Talon reserves the right to withdraw from this agreement at any time.
Talon is the holder of 4,935,500 common shares of Brazauro Resources Corporation, and 2,450,000 common shares of Beadell Resources Limited. Total assets of the company make approximately CDN$14 million.