ROAD TOWN, Tortola, British Virgin Islands, March 22, 2013 /CNW/ - Talon
Metals Corp., ("Talon" or the "Company") (TSX: TLO) reported a net loss from
continuing operations and a net loss for the year ended December 31, 2012 of
$18.4 million or $0.20 per share - basic and diluted, which includes an
impairment loss of $11.2 million on its investment in Tlou Energy Limited
("Tlou Energy") and the Company's share of loss in Tlou Energy of $2.3 million
(2011: net loss from continuing operations of $13.8 million or $0.16 per share
- basic and diluted and net loss of $4.9 million or $0.06 per share - basic
Capitalized exploration cost on the Trairão Iron Project for the year
amounted to $2.6 million. This compares to $13.5 million for the year ended
December 31, 2011. The total capitalized exploration cost on the Trairão
Iron Project to December 31, 2012 amounts to $16.6 million.
The Company recognized an impairment loss of $11.2 million on its investment
shareholding in Tlou Energy, an unlisted public Australian based coal bed
methane exploration company. Talon acquired the majority of its shares in
Tlou Energy when it sold its interest in the Botswana CBM Project to Tlou
Energy in November 2010.
The impairment loss was based on the Company's assessment of the fair value of
its interest in Tlou Energy, taking into account various approaches to
valuation, including the income, cost and market approaches, but primarily the
market approach. The write-down was based on a number of factors, including
discussions management had with market participants in connection with the
price at which Tlou Energy might raise capital in the near term and the
general challenging market conditions associated with the ability for junior
exploration companies to raise capital.
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, results in a balance for the Company's investment in Tlou Energy at
December 31, 2012 of $6.1 million.
Consolidated Audited Financial Statements for the years ended December 31,
2012 and 2011, together with Management's Discussion and Analysis and the
Company's Annual Information Form, have been filed on SEDAR and are available
Talon is a TSX-listed company focused on the exploration and development of
its iron projects in Brazil. The Company has a well-qualified exploration and
mine management team with extensive experience in project management.
For additional information on Talon please visit the Company's website
atwww.talonmetals.com or contact:
Sean Werger President Talon Metals Corp. Tel: (416) 361-9636 x 247
SOURCE: Talon Metals Corp.
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-0- Mar/22/2013 19:55 GMT
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