Talon Metals Corp. (TSX:TLO) has announced the closing of its previously announced "bought deal" public offering of units for aggregate gross proceeds of $34.5 million.
The company said the offering was for 57,500,000 units at a price of $0.60 each, which includes the issuance of 7,500,000 units under the full exercise of the over-allotment option by the underwriters.
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, and for general working capital purposes, as set out in the Prospectus.
READ: Talon Metals intersects semi-massive and disseminated sulphide at Tamarack nickel project in Minnesota
Each unit in the offering consists of one common share of Talon and one-half of a common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.80 until March 18, 2022.
The offering was conducted by a syndicate of underwriters with TD Securities as sole book-runner and including Paradigm Capital, Sprott Capital Partners and Echelon Wealth Partners. The offering was made in all the provinces of Canada (excluding Quebec), under a short form prospectus dated March 11, 2021.
Talon is a base metals company in a joint venture with Rio Tinto on the high-grade Tamarack Nickel-Copper-Cobalt Project located in Minnesota, USA, comprised of the Tamarack North Project and the Tamarack South Project.
The company has an earn-in to acquire up to 60% of the Tamarack Project. The Tamarack Project comprises a large land position (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. The company has a well-qualified exploration and mine management team with extensive experience in project management.
Contact the author at jon.hopkins@proactiveinvestors.com