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Talon Metals closes $28 million bought deal for Tamarack nickel project

The Tamarack nickel project is located in Minnesota, 210 km north of Minneapolis and 89 km west of Duluth. (Image courtesy of Talon Metals.)

Talon Metals (TSX: TLO) has announced the closing of its recent bought deal offering of common shares. For the price of C$0.49 per share, the company issued an aggregate of over 75 million shares, including 8.8 million shares issued upon the partial exercise of the over-allotment option granted to underwriters in connection with the offering, for aggregate gross proceeds of C$36.8 million (approximately $28 million).

With TD Securities as the lead, BMO Capital Markets, RBC Capital Markets, Canaccord Genuity, Paradigm Capital, Sprott Capital Partners and Stifel GMP together made up the syndicate of underwriters that made the offering.

According to the company, a “significant amount” of the net proceeds will be used for advancing work related to the planned exploration and development program at Tamarack north project in Minnesota and for general working capital purposes.

The Tamarack north project is one half of the Tamarack nickel project. With a joint ventureship with Rio Tinto, the project is made up of a north and south nickel mining efforts that span approximately 31,000 acres. 

According to Talon, the project has a resource of 8.6 million tonnes grading 1.73% nickel (plus byproducts), containing 148,000 tonnes of nickel. In early 2022, Tesla and Talon entered a nickel supply deal and the US Department of Energy awarded Talon with C$2 million in R&D funding to explore the carbon storage potential as part of a climate innovation effort.

Currently, the offering remains subject to final approval of the TSX.