Resource Capital Fund VI L.P. Sells Half of its Interest in Talon Metals Corp.

DENVER, Oct. 28, 2021 /CNW/ - Resource Capital Fund VI L.P. ("RCF VI") reports that, on October 27, 2021, pursuant to a binding private share purchase agreement dated October 15, 2021, it disposed of ownership and control of 133,610,894 common shares (each, a "Talon Share") of Talon Metals Corp. ("Talon") to Pallinghurst Nickel International Limited ("Pallinghurst"), a member of the Pallinghurst Group, at a purchase price of C$0.60 per Talon Share and an aggregate purchase price of C$80,166,536.40 (the "Transaction").

On the closing of the Transaction ("Closing"), Pallinghurst and RCF VI entered into an ancillary rights and relationship agreement (the "Relationship Agreement") which, among other things, sets out the basis on which Pallinghurst and RCF VI intend to seek common ground as to Talon's potential financing strategy and certain corporate governance matters. Pursuant to the Relationship Agreement, Pallinghurst and RCF VI agreed to not sell, transfer or otherwise dispose of any of its Talon Shares for a 12-month period following Closing without the prior written consent of the other party.

Immediately, prior to the sale of the Talon Shares to Pallinghurst, RCF VI owned and controlled a total of 267,221,788 Talon Shares, representing approximately 38.4% of the then issued and outstanding Talon Shares on a non-diluted basis. Immediately following the sale of the Talon Shares, RCF VI owned and controlled a total of 133,610,894 Talon Shares, representing approximately 19.2% of the then issued and outstanding Talon Shares on a non-diluted basis.

RCF VI disposed of the Talon Shares to Pallinghurst in accordance with its investment policy to generate proceeds from its investment in Talon. Subject to the terms of the Relationship Agreement, RCF VI may from time to time acquire additional securities of Talon, dispose of some or all of the existing or additional securities or may continue to hold its Talon Shares. Following Closing, RCF will seek to have on representative on Talon's board of directors with the consent of Talon's board of directors.

Talon's head office is located at Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands.

To obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see Talon's profile on the SEDAR website www.sedar.com.

About Resource Capital Fund VI L.P.
RCF VI is a Cayman Islands exempt limited partnership and a private investment fund. 

SOURCE Resource Capital Fund VI L.P.

and to obtain a copy of the early warning report, please contact: Resource Capital Fund VI L.P. 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: [phone], Attn: Molly Campbell