Talon Metals reported financial results for Year 2012

Talon Metals Corp., the British Virgin Islands-registered TSX-listed company focused on the exploration and development of its iron projects in Brazil, reported its financial results for the year ended December 31, 2012. In this year, company’s net loss was US$18.4 million or $0.20 per share – basic and diluted. Capitalized exploration cost on the Trairão Iron Project amounted to US$2.6 million, as compared to US$13.5 million for the previous year period ended December 31, 2011. Total capitalized exploration cost on this project amounts to US$16.6 million to the end of the year 2012.

The BVI company had an impairment loss of US$11.2 million on its investment shareholding in Tlou Energy, which is an unlisted public Australia-based coal bed methane exploration company. Talon holds the majority of this company’s shares, and the impairment loss was based on Talon’s assessment of the fair value of its interest in Tlou Energy, taking into account primarily the market approach. At the beginning of the year, the Company’s investment in Tlou Energy amounted to $19.6 million. The recognition of the impairment loss of $11.2 million, together with the Company’s share of loss in Tlou Energy of $2.3 million for the year, resulted in a balance for the Company’s investment in Tlou Energy at December 31, 2012 of $6.1 million.

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