Talon Metals Corp (TSX: TLO) has a new major institutional investor. It was revealed this morning that The Pallinghurst group, whom is a major investor in the natural resource space focused on battery metals, has taken a 19.2% stake in the company.
The position in Talon was acquired via Pallinghurst Nickel International, whom is acquiring a total of 133.5 million shares of the issuer in an arrangement with Resource Capital Fund VI LP. The purchase price for the position is said to be $80.2 million, however Talon will not see any of these funds due to it being a private transaction.
In connection with the purchase, Pallinghurst has agreed to not sell or dispose of its position for a period of twelve months following the completion of the purchase. The firm will also enter a rights and relationship agreement with RCF related to corporate governance and financing strategies.
The transaction is expected to close October 22.
Talon Metals last traded at $0.68 on the TSX.
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