Talon Metals Corp. (TSX:TLO) said it has entered into an agreement with a syndicate of underwriters led by TD Securities Inc. for a $32.5 million bought deal public offering.
Under the deal, the underwriters have agreed to purchase, on a bought deal basis, 66,400,000 common shares of Talon Metals at a price of $0.49 each.
The company has granted the underwriters an over-allotment option to purchase up to an additional 9,960,000 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 proceeds will be used for advancing work related to Talon Metals’ planned exploration and development program at the Tamarack North Project in Minnesota, and for general working capital purposes.
READ: Talon Metals announces surge in mineral resource estimate for Tamarack Nickel Project
The offering is expected to close on or about November 16, 2022, 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 (TSX).
The securities to be issued under the offering will be offered by way of a prospectus supplement that will be filed in each of the provinces of Canada other than Quebec under the company's base shelf prospectus dated December 7, 2021, and may be offered for sale in the US to qualified institutional buyers by way of private placement pursuant to an exemption from the registration requirements of the United States Securities Act of 1933,
The securities have not been and will not be registered under the 1933 Act, as amended, and may not be offered or sold in the US absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, the company noted.
Talon Metals is a TSX-listed base metals company developing the high-grade Tamarack Nickel-Copper-Cobalt Project located in central Minnesota.
Contact the author at jon.hopkins@proactiveinvestors.com