If I remember correctly. The weapon needs Orichalcum.
It's found in the house in the City of Hablegorn. (on a blue carpet tile). Stand on top and click the confirm button and you'll get it.
I have that already, i'm just not sure who to hand it to. I've talked to everyone, and I can't obtain this weapon.
You need to have it and the Broken Sword. Then talk to the same person you talked to fix the Chipped Pendant. (the Blacksmith)
Is the "Broken Sword" in the Hablegorn House as well?
Nope. That one is in the Screeone castle ruins (hidden in a fireplace)
Found it, if the game was this good, I can't wait for the remake.