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Mining

Talon Metals spends C$1.3 million on Tamarack asset in second quarter

The group is focused on producing nickel for the rapidly growing electric vehicles industry and is in a joint venture with mining titan Rio Tinto on the high-grade asset

Talon Metals Corp (TSE:TLO), the nickel-focused junior, told investors it spent C$1.3 million on its Tamarack nickel-copper-cobalt project in the three months to end-June, 2020.

The group is focused on producing nickel for the rapidly growing electric vehicles (EV) industry and is in a joint venture with mining titan Rio Tinto (LON:RIO) on the high-grade asset, which lies in Minnesota, USA, and consists of the Tamarack North project and the Tamarack South project. Talon can earn up to 60% of the project.

READ: Talon Metals closes C$5.1 million financing to advance Tamarack nickel project in Minnesota

In a brief statement, the firm said its capitalized exploration costs and deferred expenditures on the project in the second quarter amounted to C$1.3 million versus C$1.5million for the same period in 2019.

The total capitalized exploration cost at the project to June 30 this year came in at C$59.7 million, it added.

In keeping with its pre-revenue status, the group reported a net loss for the three months of C$300,000 or nil per share (basic and diluted), which was mainly the result of administration expenses, narrowed from a net loss for the three months ended June 30, 2019, of C$800,000.

On August 13, Talon revealed that it had raised just over C$5.1 million through a' best efforts' public offering designed to advance exploration work at Tamarack. It issued over 19.8 million shares, priced at C$0.26 per share. The offering included 590,800 shares issued pursuant to the partial exercise of the agent's over-allotment option, the group added.

Contact the author at giles@proactiveinvestors.com

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