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| Talon Metals |
Financing supports Minnesota-based nickel exploration with Rio Tinto
U.S. Defense contract reinforces strategic critical mineral value
Talon Metals Corp. has launched a $24 million financing effort to accelerate development of the Tamarack Nickel Project in Minnesota. The company is raising funds through a $10 million brokered private placement and a concurrent $14 million non-brokered private placement.
The Tamarack project is a high-grade nickel-copper-cobalt joint venture with Rio Tinto Group. Talon currently holds a 51% stake and has an option to increase ownership to 60% by completing a feasibility study and paying Rio Tinto US$10 million by March 2026.
The brokered placement involves a bought deal offering of 44.46 million units at 22 cents per unit, with an overallotment option for an additional 6.8 million units. The non-brokered placement will issue up to 62.2 million units at the same terms. Each unit includes one common share and half a warrant exercisable at 28 cents for 36 months, subject to acceleration if the share price exceeds 56 cents for 20 consecutive trading days.
Proceeds will help advance exploration and development work at Tamarack, which spans an 18-kilometre strike length and contains high-grade intercepts beyond the defined resource. Despite the financing announcement, Talon’s stock dipped 17.3% to 21.5 cents, reflecting market volatility in the junior mining sector.
In addition to private funding, Talon was recently awarded a US$2.47 million contract by the U.S. Department of Defense’s Defense Logistics Agency. The 15-month research program will study novel methods for extracting nickel, cobalt, and iron from domestic sulfide ores and tailings, reinforcing Tamarack’s role in national critical mineral supply chains.
ScrapInsight Commentary:
Talon’s financing and DLA-backed R&D work underscore how nickel remains central to both energy transition and national security agendas. For recyclers and battery supply chain stakeholders, Tamarack’s progress may shift long-term sourcing strategies. U.S. investment in domestic supply could reduce reliance on imported nickel and alter future scrap demand profiles.
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