CAPITAL MARKETS

Rio JV partner Talon raises C$11.5M

Plans to advance Tamarack North

Staff reporter
 Massive sulphide mineralisation Talon Metals unveiled in November, during ongoing drilling at Tamarack in Minnesota

Massive sulphide mineralisation Talon Metals unveiled in November, during ongoing drilling at Tamarack in Minnesota

The company has said Tamarack was positioned to become the only US source of "green nickel", following Tesla's call for clean nickel and the expected growing demand for the battery mineral.

Talon said the over-allotment option for its offering, also priced at 30c per share, was exercised in full.

Talon can acquire up to 60% of Rio Tinto's Tamarack, after turning down the option to purchase Rio subsidiary Kennecott Exploration's 81.55% of the nickel-copper-cobalt project for US$114 million in 2017.  

Talon said it had spent C$7.5 million on the project, "substantially all" on Tamarack North, in the nine months to September 30.

An updated preliminary economic assessment in March for Tamarack North put initial capex at US$219 million, after-tax NPV8 at $268 million and IRR at 36% on a 100% basis, using a base case nickel price of $8/lb.

Talon last raised C$5.1 million at 26c per share in August and kicked off a resource expansion drilling programme.

The company had about $6.1 million in working capital at October 31.

It said the latest proceeds would advance work related to its planned exploration and development program at Tamarack North and for general working capital purposes.

Talon (TSX: TLO) shares closed up 5.88% on Friday to 36c, towards the top of a one-year range, capitalising it at $212.9 million (US$167 million).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Q1 Mining Equities Report 2023

Discover new trends in mining investment with insights into capital raisings and share price performance of more than 2,500 companies.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.