Talon acquires 33% interest in Gurvantes CBM project in Mongolia

Talon acquires 33% curiosity in Gurvantes CBM challenge in Mongolia

Sydney-listed Talon Vitality has exercised the choice to accumulate a 33% curiosity within the Gurvantes XXXV coalbed methane (CBM) challenge in Mongolia after satisfying its stage one farm-in dedication. The challenge is operated by fellow Australian firm TMK Vitality.

The transfer comes simply weeks after TMK delivered its maiden independently assessed contingent useful resource estimate of 1.2 trillion ft³ for the Nariin Sukhait space inside the Gurvantes XXXV challenge. Upon the completion of the switch of Talon’s 33% collaborating curiosity, about 400bn ft³ of the 2C contingent useful resource will probably be attributable to Talon.

“The success at our Mongolian challenge caps a landmark yr for Talon in 2022, with our Walyering challenge within the Perth Basin, Western Australia taking FID and shifting quickly in the direction of manufacturing which can see Talon incomes vital cashflows within the new yr,” CEO Colby Hauser stated. “Subsequent yr will see Talon each cement and construct from the success in 2022 at our two flagship tasks.”

In February 2021, Talon executed a binding settlement with Telmen Useful resource, a subsidiary of TMK, to accumulate a 33% curiosity within the manufacturing sharing settlement over the Gurvantes challenge space.

Below the phrases of the farm-in settlement, Talon was required to supply preliminary funding of $1.85mn to earn an choice to be assigned a 33% curiosity within the Gurvantes PSA, and on the train of the choice, decide to funding an additional $3.15mn in exploration expenditure, and enter right into a three way partnership association with Telmen.

The settlement between the events requires every participant to fund their collaborating curiosity within the three way partnership, being 67% TMK and 33% Talon. Along with the 33% curiosity in Gurvantes earnt up to now, Talon additionally holds a 3-year pre-emptive proper (PEP) over the sale by Telmen of all or a part of its retained curiosity (67%) within the Gurvantes challenge.

The PEP offers Talon with a primary proper of refusal over Telmen’s curiosity in Gurvantes and requires Telmen to not promote any of its retained curiosity with out first providing the curiosity to Talon. The PEP is efficient from February 2022.

In the meantime, Talon in a separate assertion stated that it has obtained agency commitments for a A$12mn placement of recent shares. The corporate will use the funds for its two flagship tasks.