Talon Metals Corp. [TLO-TSX, TLOFF-OTC Pink] has announced details of a $24 million financing, consisting of a $10 million brokered private placement and a concurrent $14 million non-brokered private placement.
The company said it plans to use part of the net proceeds from the offering to advance the Tamarack Nickel Project in Minnesota.
Talon said it has entered into an agreement with underwriting syndicate in connection with a bought deal private placement offering of 44.46 million units (the LIFE units) priced a 22 cent each for gross proceeds of just over $10 million. The company has granted the underwriters an option to purchase up to an additional 6.8 million LIFE units at the offering price for additional gross proceeds of $1.5 million. That option can be exercised in whole or in part for up to 48 hours prior to closing, which is expected to occur on June 19, 2025.
Concurrent with the LIFE offering, the company plans to complete a non-brokered private placement of up to 62.2 million units (non-LIFE units) at the offering price for gross proceeds of approximately $13.6 million. The non-LIFE units will be issued on the same terms as the LIFE units. Each unit will consist of one common share and one-half of one common share purchase warrant, each of which will entitle the holder to acquire one common share for 28 cents per warrant share, for 36 months from the closing of the LIFE offering.
The company reserves the right to accelerate the expiry date of the warrants if the share price exceeds 56 cents for 20 consecutive trading days.
On Monday, the shares eased 17.3% or $0.045 to 21.5 cents. The shares trade in a 52-week range of 32.5 cents and $0.75.
Talon is a base metal company engaged in a joint venture with Rio Tinto Group [RIO-NYSE] on the high-grade Tamarack nickel-copper-cobalt project in central Minnesota. The Tamarack project consists of a large land position (18 kilometres of strike length) with additional high grade intercepts outside the current resource area.
Talon has an earn-in right to acquire up to 60% of the Tamarack nickel project and currently owns 51%.
To earn an additional 9.0% interest for a total of 60% (by March 2026), Talon must complete a feasibility study and pay US$10 million to Rio Tinto.
Talon, through its wholly-owned subsidiary Talon Nickel (USA) LLC, was recently awarded a research and development contract from the U.S. Department of Defence’s Defense Logistics Agency. The DLA will provide funding in the fixed amount of US$2.47 million to finance scientific research on new approaches for extracting nickel, cobalt and iron from domestic nickel sulphide ores and tailings. The funding will be provided over a 15-month period for a project titled
The company said funding underscores the long-term strategic importance of nickel for defense platforms, electric batteries, and other clean energy systems.
