Talon Metals (TSX: TLO) has entered into a major transaction with Lundin Mining (TSX: LUN) to create what will be the only pureplay primary nickel-copper company in the United States. The transaction will see Talon acquire the operating Eagle Mine and Humboldt Mill in Michigan, which are adjacent to Talon’s 400,000 acre land package in Michigan.
“This transaction brings together the positive cash-flow-generating Eagle Mine and Humboldt Mill, the proven operating experience of the Eagle and Humboldt teams, and Talon’s in-house exploration capabilities to create the only operating primary nickel-copper company in the United States with expansion potential,” commented Henri van Rooyen, CEO of Talon.
The arrangement will see the operating Eagle Mine and Humboldt Mill brought together with Talon’s interest in the Tamarack Nickel-Copper-Cobalt project in Minnesota and the related Beulah Minerals Processing Facility in North Dakota.
The Eagle Mine in 2026 is currently guided to produce between 5,000 and 8,000 tonnes of copper and between 6,000 and 9,000 tonnes of nickel.
Cash flow from the Eagle Mine is expected to be utilized for further exploration at Talon’s land package in Michigan and at Tamarack, with what is being called “its most ambitious exploration program to date in 2026,” although further details were not provided. The cash flow at the same time is also expected to fund the advancement of Tamarack through environmental reviews and permitting.
Under the terms of the arrangement, Talon will issue 275.2 million common shares to Lundin Mining for the Eagle Mine and Humboldt operations, representing a 18.73% interest in the company, which grows to 19.9% when combined with Lundin’s current interest in Talon. A concurrent private placement with the Lundin Family Trust for US$5.6 million will then see the Trust hold 1.26%.
The transaction is valued at an estimated $114.2 million based on Talon’s most recent closing price on the TSX.
As part of the arrangement, Jack Lundin and Juan Andres Morel, the CEO and CFO, respectively, of Lundin Mining, will join the board of Talon Metals. Darby Stacey, the current Managing Director of the Eagle Mine and Humboldt Mill, meanwhile is set to become the new CEO and director of Talon. Henri van Rooyen, current CEO of Talon, is expected to move to the Executive Chairman role.
As part of the arrangement, Talon will also be conducting a ten to one share consolidation as soon as is practicable following the closing of the transaction.
The transaction is set expected to close in early January.
Talon Metals last traded at $0.415 on the TSX.
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