Talon Metals Corp. (TSX:TLO) said it has entered into an agreement with a syndicate of underwriters, co-led by Paradigm Capital and Sprott Capital Partners for around a $10 million bought deal public offering of common shares.
Talon said it intends to use the net proceeds from the offering for advancing work related to its planned exploration and development program at the Tamarack North Project in Minnesota, USA, and for general working capital purposes.
The underwriters have agreed to purchase, on a bought deal basis, 33,334,000 common shares of Talon at a price of $0.30 per common share for aggregate gross proceeds of $10,000,200.
READ: Talon Metals says it is “excited” by latest drill results at the Tamarack Project in Minnesota
The corporation has granted the underwriters an over-allotment option to purchase up to an additional 5,000,100 Talon common shares at the issue price, exercisable in whole or in part at any time up to 30 days after the closing of the offering.
The offering is expected to be conducted in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland, under a prospectus supplement to the corporation's base shelf prospectus dated March 26, 2020.
The offering is expected to close on or about December 11, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange
Talon is in a joint venture with Rio Tinto PLC on the high-grade Tamarack Nickel-Copper-Cobalt Project located in Minnesota, comprised of the Tamarack North Project and the Tamarack South Project.
The corporation has an earn-in to acquire up to 60% of the Tamarack Project which comprises a large land position at 18 kilometres of strike length with numerous high-grade intercepts outside the current resource area.
Talon is focused on expanding its current high-grade nickel mineralization resource prepared in accordance with NI 43-101; identifying additional high-grade nickel mineralization, and developing a process to potentially produce nickel sulphates responsibly for batteries for the electric vehicles industry. It has a well-qualified exploration and mine management team with extensive experience in project management.
Contact the author at jon.hopkins@proactiveinvestors.com