Talon Metals completes acquisition of Lundin Mining’s Eagle Mine and Humboldt Mill Operations, Michigan
Talon Metals Corp. [TSX: TLO; OTCID: TLOFF] (together with its subsidiaries) reported the completion of its previously announced transaction with Lundin Mining Corp. [TSX: LUN; Stockholm: LUMI] under which it acquired the producing Eagle Mine and associated Humboldt Mill, Michigan. On closing of the transaction, Lundin Mining was issued 275,152,232 Talon common shares and granted a production payment royalty on ore from sources other than the Eagle Mine that is processed through the Humboldt Mill at a rate of US$1.00 per tonne, up to a maximum aggregate payment of US$20.0 million (representing 20 million tonnes of ore).
“The completion of the Eagle Mine and Humboldt Mill acquisition is a defining moment for Talon. I am pleased to welcome Darby Stacey as CEO, along with the Eagle and Humboldt mining and processing team, to Talon. This transaction has brought 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, environmental and permitting capabilities to create the only operating primary nickel-copper company in the United States with meaningful expansion potential. With the transaction now complete, our combined team is positioned to advance our four strategic priorities in parallel – materially extending the Eagle Mine life, accelerating exploration in Michigan and Minnesota, advancing permitting at the Tamarack Nickel-Copper Project and the Beulah Battery Minerals Processing Facility, and progressing engineering toward feasibility study and construction at a time when it is vitally important to drive decisively toward U.S. critical minerals self-sufficiency,” said Henri van Rooyen, Executive Chairman of Talon.
In connection with closing of the Transaction, Jack Lundin and Juan Andrés Morel, the CEO and COO, respectively, of Lundin Mining, were appointed to the board of directors of Talon (the Talon Board). Darby Stacey, the General Manager of the Eagle Mine under Lundin Mining, has been appointed as CEO of Talon and has also joined the Talon Board. In addition, Warren Newfield has stepped down from the Talon Board and Henri van Rooyen has been appointed Executive Chairman.
As previously announced, Talon entered into a subscription agreement concurrently with entering into the definitive agreement in respect of the transaction pursuant to which it agreed to issue 18,555,783 Talon Shares (the Concurrent Private Placement) to a trust settled by the late Adolf H. Lundin (the Lundin Family Trust). The TSX requires shareholder approval of the Concurrent Private Placement in accordance with Section 604(a)(i) of the TSX Company Manual and the company intends to call a special meeting as soon as practicable to seek such approval.
The Talon Board has determined that the previously announced consolidation of the Talon Shares on the basis of one post-consolidation Talon Share for every 10 pre-consolidation Talon Shares, will be effective on January 23, 2026.
The Toronto Stock Exchange has accepted notice of the Consolidation, and the Talon Shares are expected to begin trading on the TSX on a post-Consolidation basis on or about January 27, 2026. The post-Consolidation Talon Shares will continue to trade on TSX under the symbol “TLO” but with a new CUSIP number (G86659201) and new ISIN (VGG866592014).
As a result of the Consolidation, the number of outstanding Talon Shares will be reduced from approximately 1,478,254,002 pre-Consolidation Talon Shares currently outstanding to approximately 147,825,400 post-consolidation Talon Shares as at the Effective Date, subject to adjustment for the rounding down of fractions as outlined below.
The consolidation will also result in proportionate adjustments to the exercise price and number of Talon Shares issuable pursuant to the Company’s outstanding share purchase warrants and stock options in accordance with the terms of the warrant indenture between the Company and Computershare Trust Company of Canada dated June 18, 2025, the company’s Stock Option Plan and other documents governing such securities.
Canaccord Genuity Corp. was engaged as financial advisor to the Company. Cassels Brock & Blackwell LLP and Dorsey & Whitney LLP acted as legal counsel to the Company.
Talon is a TSX-listed base metals company advancing and operating high-grade nickel-copper assets in the United States, including 100% ownership of the Eagle Mine and Humboldt Mill in Michigan, the only primary nickel mine currently operating in the United States, and the Tamarack Nickel-Copper-Cobalt Project in Minnesota. Talon is in a joint venture with Rio Tinto on the high-grade Tamarack Nickel-Copper-Cobalt Project in central Minnesota.
The Tamarack Nickel-Copper-Cobalt Project comprises a large land position (18km of strike length) with additional high-grade intercepts outside the current resource area. Talon has an earn-in right to acquire up to 60% of the Tamarack Nickel-Copper-Cobalt Project and currently owns 51%. Talon has a neutrality and workforce development agreement in place with the United Steelworkers union.
Talon’s Beulah Mineral Processing Facility in Mercer County was selected by the US Department of Energy for US$114.8 million funding grant from the Bipartisan Infrastructure Law and the US Department of War awarded Talon a grant of US$20.6 million to support and accelerate Talon’s exploration efforts in both Minnesota and Michigan.