Talon Metals Announces $30 Million Bought Deal Public Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

ROAD TOWN, British Virgin Islands, Feb. 24, 2021 (GLOBE NEWSWIRE) -- 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 “Sole Bookrunner” and collectively the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 50,000,000 units of the Corporation (the “Units”) at a price of $0.60 per Unit (the “Issue Price”) for aggregate gross proceeds of $30,000,000 (the “Offering”). Each Unit will consist of one common share of Talon (a “Common Share”) and one-half of a share purchase warrant (a “Warrant”) of the Corporation. Each whole Warrant will entitle the holder to acquire one Common Share at a price of $0.80 for a period of 12 months following closing of the Offering.

The Corporation has granted the Underwriters the option (the “Over-Allotment Option”) to purchase up to an additional 7,500,000 Units at the Issue Price, exercisable in whole or in part at any time up to 30 days after the closing of the Offering.

The Corporation intends to use the net proceeds from the Offering 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 is expected to close on or about March 18, 2021 and is 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 securities to be issued under the Offering will be offered by way of a short form prospectus in each of the Provinces of Canada other than Quebec and may be offered for sale in the United States to Qualified Institutional Buyers (as defined in Rule 144A under the United States Securities Act of 1933, as amended (the "1933 Act") by way of private placement pursuant to an exemption from the registration requirements of the 1933 Act.

The securities have not been and will not be registered under the 1933 Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.