TORONTO, June 12, 2023 (GLOBE NEWSWIRE) -- Talisker Resources Ltd. (“ Talisker ” or the “ Company ”) (TSX:TSK | OTCQX:TSKFF) is pleased to announce it has entered into a royalty agreement with Sprott Resource Streaming and Royalty Corp. (“ Sprott ”) in relation to the Company’s 100% owned Bralorne Gold Project (the “ Project ”). Under the terms of the agreement, Sprott will pay the Company up to US$31,250,000 for a net smelter returns royalty (the “ Royalty ”) covering all minerals produced from the Project (the “ Royalty Transaction ”). Highlights of the Royalty Transaction include:

• A maximum of US$31,250,000, with a minimum consideration of US$18,750,000, payable as to:
  • an initial grant of a 1.12% Royalty for a draw of US$7,000,000 for drilling, detailed engineering and working capital;
  • a further 1.88% Royalty for a subsequent draw of US$11,750,000 on, among other things, the signing of a toll milling agreement for mobilization, site infrastructure, resource conversion drilling and working capital; and
  • up to a further 2% Royalty, to a maximum of a 5% Royalty, for US$12,500,000 available as needed for site infrastructure, mine start-up capital and working capital;
• An option, exercisable solely at the discretion of the Company until December 31, 2028, to repurchase 50% of the Royalty (as more particularly described below);
• The residual Royalty will be reduced by an additional 50% for no additional consideration following 1.5 million ounces of gold production; and
• Closing of the initial 1.12% Royalty is subject to customary closing conditions and is expected to occur mid-June 2023.
  

Terry Harbort, President and CEO of Talisker, stated,

“This non-dilutive funding package delivers a major catalyst to Talisker, providing the necessary capital for the pathway to long-term production at Bralorne. The flexible deal provides the necessary upfront funds for infill drilling and development while protecting the Project’s considerable resource and exploration upside with buyback and capping optionality. Following on from our strong resource statement earlier in the year, we look forward to advancing Bralorne to the next stage.”

Michael Harrison, Managing Partner, Sprott Resource Streaming and Royalty Corp. commented,

“As a permitted high-grade Canadian asset with known metallurgy and exceptional grade and vein continuity, we are pleased to partner with Talisker and provide assistance in re-igniting Bralorne as British Columbia’s largest historic gold producer.”

Buyback

The Company will have a right, to be satisfied in cash or in shares (subject to a 4.9% ownership limit, calculated at the time of the buyback), at the Company’s sole discretion (and subject to prior approval of the Toronto Stock Exchange (the “ TSX ”)), to repurchase a 50% interest of the Royalty for a price that is equal to half of the then-paid Purchase Price multiplied by the multiplier, as follows:

Production Target

There is an amount payable under the Royalty by the Company if quarterly production targets of 17,500 ounces for each of the quarters ending September 30, 2026 and December 31, 2026 are not achieved.

Participation Right

The Company has granted a five year pre-emptive right (subject to rights previously granted to Osisko Gold Royalties Ltd.) to participate up to a maximum of 40%, or US$40,000,000, in any proposed grant, sale or issuance to any third party of a stream, royalty or similar transaction based on future production from the Project.

Closing

The Royalty Transaction is subject to certain customary closing conditions. Furthermore, the issuance of any common shares of the Company in connection with the Royalty Transaction will require the prior approval of the TSX.

Talisker is providing an opportunity for shareholders and other interested parties to participate in a Webinar to be held at 2 pm ET on Thursday, June 15, 2023. To register, please click on the following link - https://us02web.zoom.us/webinar/register/WN_DjYiGWRwQ1G7RS6B9aOY8g

For further information, please contact:

About Talisker Resources Ltd.

Talisker (taliskerresources.com) is a junior resource company involved in the exploration of gold projects in British Columbia, Canada. Talisker’s projects include the Bralorne Gold Complex and the Ladner Gold Project, both advanced stage projects with significant exploration potential from historical high-grade producing gold mines, as well as its Spences Bridge Project where the Company holds ~85% of the emerging Spences Bridge Gold Belt, and several other early-stage Greenfields projects. With its properties comprising 291,392 hectares over 487 claims, three leases and 197 crown grant claims, Talisker is a dominant exploration player in south-central British Columbia.

Caution Regarding Forward Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance and include statements regarding the Royalty Transaction, including the expected closing date. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Talisker’s current belief or assumptions as to the outcome and timing of such future events. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Talisker. Although such statements are based on reasonable assumptions of Talisker’s management, there can be no assurance that any conclusions or forecasts will prove to be accurate.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined, risks relating to variations in grade or recovery rates, risks relating to changes in mineral prices and the worldwide demand for and supply of minerals, risks related to increased competition and current global financial conditions, access and supply risks, reliance on key personnel, operational risks, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, title and environmental risks and risks relating to the failure to receive all requisite shareholder and regulatory approvals.

The forward-looking information contained in this release is made as of the date hereof, and Talisker is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.