Talon to raise cash for Minnesota nickel project

21st January 2022 By: Mariaan Webb - Creamer Media Deputy Editor Online

TSX-listed base metals company Talon Metals has announced a C$27.5-million bought-deal public offering and a concurrent private placement to advance its Tamarack nickel project, in the US.

A syndicate of underwriters, led by TD Securities, has agreed to purchase 38.2-million shares on a bought-deal basis at C$0.72 each, the nickel company says.

The underwriters have been granted an over-allotment option for an additional 5.73-million shares.

Concurrently with the closing of the offering, Talon intends to complete a non-brokered private placement of about $6.4-million of shares at the issue price with Pallinghurst, which will result in the metals investment group maintaining its ownership of 19% in the corporation.

Talon owns the Tamarack nickel/copper/cobalt project in a joint venture with diversified major Rio Tinto. It has the right to acquire up to 60% in the project and currently owns 51%.

Last week, Talon entered into an agreement to supply US-based electric vehicle producer Tesla with nickel from the mine.  

The base metals company's stock fell 6% on Thursday, closing at $0.75 a share.