Lundin Mining has entered into an exclusivity agreement with Talon Metals to negotiate an earn-in agreement for the potential acquisition of up to a 70% interest in the Boulderdash and Roland nickel-copper exploration properties.
Located adjacent to Lundin’s Eagle mine, the optioned properties cover 33,000 acres within Talon’s 400,000-acre mineral package in Michigan’s Upper Peninsula.
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Talon is currently in the process of earning up to an 80% interest in the Michigan Land Package from UPX Minerals.
Under the anticipated terms of the option agreement, Lundin Mining is expected to fund up to 30,000m of Talon’s drilling campaign at Boulderdash to earn a 44.63% interest in the optioned properties.
The initial step in this partnership has seen Lundin Mining advance $5m to Talon to kick-start drilling activities at Boulderdash.
This drilling will be conducted in 10,000m tranches at Lundin Mining’s discretion.
Upon completion of the drilling, Lundin Mining has the option to fund a feasibility study for an additional 25.38% interest, potentially bringing its total ownership to 70%.
Lundin also holds the potential to own a 90% interest in certain properties adjacent to Boulderdash.
The Boulderdash properties are strategically located approximately 12km north-west of Eagle mine in Michigan, the only operating nickel mine in the US.
Talon CEO Henri van Rooyen said: “Talon continues to respond to the call for responsible production of critical minerals in the US, specifically nickel for defence and national security purposes.
“The proposed transaction with Lundin Mining is part of Talon’s strategy to continue to build Talon’s integrated drilling and geophysics business to generate cash flow to progress the feasibility study and permitting of the Tamarack Mining Project in Minnesota and its Battery Minerals Processing Facility in North Dakota.
“Once the option agreement is signed, Talon expects to be cash flow positive, which is a rare achievement for a junior exploration and mine development company.”
If the agreement is not finalised, Talon will have to repay the $5m advance or issue shares to Lundin Mining at a value equivalent to the advance, based on the five-day volume-weighted average price of Talon shares on the Toronto Stock Exchange (TSX) at the time of issuance.
In June 2024, Lundin Mining exercised its option to acquire an additional 19% stake in SCM Minera Lumina Copper Chile, the owner of the Caserones copper-molybdenum mine, for $350m.
