Talon Metals Announces $27.5 Million Bought Deal Public Offering and Concurrent Private Placement
Summary
Road Town, Tortola, British Virgin Islands (January 20, 2022) Talon Metals Corp. (TSX: TLO) (Talon or the Corporation) is pleased to announce that the Corporation has entered into an agreement with a syndicate of underwriters led by TD Securities Inc. (the Lead Underwriter and collectively the Underwriters) pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 38,200,000 common shares of the Corporation (the Shares) at a price of $0.72 per Share (the Issue Price) for aggregate gross proceeds of approximately $27.5 million (the Offering).The Corporation has granted the Underwriters an over-allotment option (the Over-Allotment Option) to purchase up to an additional 5,730,000 Shares at the Issue Price, exercisable in whole or in part at any time up to 30 days after the closing of the Offering.Concurrently with the closing of the Offering, the Corporation intends to complete a non-brokered private placement of approximately $6.4 million of Shares at the Issue Price (the Private Placement) with Pallinghurst Nickel International Ltd. (Pallinghurst). Should the Over-Allotment Option be exercised, Pallinghurst shall have the option to purchase such additional Shares under the Private Placement as to allow Pallinghurst to maintain approximate 19% ownership of Shares of the Corporation following the exercise of the Over-Allotment Option.The Corporation intends to use the net proceeds from the Offering and the Private Placement for advancing work related to its planned exploration and development program at the Tamarack North Project in Minnesota, and for general working capital purposes.The Offering and the Private Placement are expected to close on or about January 31, 2022 and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (the TSX). The Tamarack Nickel Project comprises a large land position (18km of strike length) with high-grade intercepts outside the current resource area. Talon is focused on (i) expanding and infilling its current high-grade nickel mineralization resource prepared in accordance with NI 43-101 to shape a mine plan for submission to Minnesota regulators, (ii) following up on additional high-grade nickel mineralization in the Tamarack Intrusive Complex, and (iii) exploring the prospects for significant carbon storage in the ultra-mafic rocks that comprise the Tamarack Intrusive Complex through carbon mineralization. Such forward-looking statements include statements relating to the anticipated closing of the Offering and the Private Placement, the anticipated use of the net proceeds from the Offering and the Private Placement, the entering into of the Underwriting Agreement and the receipt of all necessary approvals, including the approval of the TSX.