Talon Metals Corp. (TSX:TLO, OTC:TLOFF) has told investors it spent over $50 million on the exploration and development of its Tamarack nickel-copper-cobalt project in Minnesota last year.
Reporting its financial results for the year to December 31, 2022, the mineral exploration company also said it reduced its net loss to $1.5 million, or nil per share, compared to a net loss of $5.5 million, or $0.01 per share, in 2021. The loss was primarily the result of administration expenses and stock option compensation offset by foreign currency gains, it said.
Capitalized exploration costs and deferred expenditures on the Tamarack project for the year amounted to $52.9 million, compared to $38 million in its 2021 financial year. The total capitalized exploration cost to the Tamarack project to December 31, 2022 amounts to $160.5 million, the company added.
Talon ended 2022 with cash and cash equivalents of $5.01 million, up from $4.02 million in 2021. As of December 31, 2022, it had working capital of $39.6 million, up from $23.1 million a year earlier, and shareholders’ equity of $212.8 million, up from $122 million.
The Tamarack nickel project comprises a large land position with high-grade intercepts outside the current resource area. Talon has an earn-in right to acquire up to 60% of the project and currently owns 51%.
The firm has an agreement with Tesla to supply it with 75,000 metric tonnes of nickel in concentrate from Tamarack over an estimated six-year period once commercial production is achieved.
Contact the author at stephen.gunnion@proactiveinvestors.com