Talon Metals Announces $27.5 Million Bought Deal Public Offering and Concurrent Private Placement

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ROAD TOWN, British Virgin Islands, Jan. 20, 2022 (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 “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”). Upon closing of the Private Placement, Pallinghurst, will maintain its ownership of approximately 19% in the Corporation. 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”). Closing of the Offering is not conditional upon the concurrent closing of the Private Placement.

The securities to be issued under the Offering will be offered by way of a prospectus supplement that will be filed in each of the provinces of Canada other than Quebec under the Corporation's base shelf prospectus dated December 7, 2021 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.