Mentioned:
Two publicly traded Canadian mining companies are coming together with a new ambitious vision: dominating the future of nickel production in America.
What’s happening:
- Talon Metals (TSX: TLO) has struck a new deal with Lundin Mining (TSX: LUN) to acquire their Eagle Mine and Humboldt Mill in an all stock deal
Why it matters:
- The Eagle Mine is currently the only primary nickel mine in the United States of America that is currently operational and in production
Going deeper:
- Talon Metals has publicly stated they will collaborate closely with Lundin Mining on bringing modern mining technology and efficiency improvements to the Eagle Mine to expand the potential mine life
- Talon Metals flagship nickel project in Minnesota known as the Tamarack Nickel-Copper-Cobalt project is widely considered to be one of the most high grade nickel deposits in America and has a existing offtake deal with Tesla (NASDAQ: TSLA) to supply them with nickel once it goes into full production
The intrigue:
- The Lundin family will invest approximately $5.6M USD into Talon Metals through a new equity financing round as part of the acquisition and will also join the board of directors of Talon Metals
