US-based Talon Metals has entered into a definitive share purchase agreement with Lundin Mining to acquire 100% of Lundin Mining US, the subsidiary that indirectly owns the Eagle Mine and Humboldt Mill.

The deal will see Lundin Mining receive 275.2 million Talon shares, representing 18.4% of Talon’s issued and outstanding shares upon completion.

The share consideration is valued at approximately $83.7m (C$115.43m).

Upon closing, Lundin Mining’s total holding in Talon will increase to 19.99% of Talon’s issued and outstanding common shares on a non-diluted basis.

The agreement contemplates a transaction that will merge Lundin Mining’s operating Eagle Mine and its associated Humboldt Mill with Talon’s stake in the Tamarack nickel-copper-cobalt project.

The deal also covers Talon’s prospective exploration land package of more than 400,000 acres in Michigan, US, which covers the Boulderdash nickel/copper discovery located eight miles from the Eagle Mine.

Additionally, Talon’s planned Beulah minerals processing facility in North Dakota will be included in the combined arrangement.

The transaction will result in a newly formed Talon board made up of ten directors, with Lundin Mining nominating its president and CEO Jack Lundin, and Juan Andrés Morel.

Lundin said: “The combination of Talon and Eagle will create a pure-play US nickel company anchored by the Eagle Mine, the only primary nickel mine currently operating in the US. This transaction unlocks meaningful synergies, including the opportunity to leverage the Humboldt Mill as a shared, centralised processing facility.

“We are pleased to see this consolidation come to fruition and believe that the combination of our complementary capabilities will drive long-term value for shareholders while supporting sustained economic growth in the local community.”

Furthermore, Lundin Mining will account for its interest in Talon using the equity method.

Lundin Mining, along with its subsidiary, will also sign a production payment agreement covering ore processed at the Humboldt Mill that does not come from the Eagle Mine.

Under this arrangement, Lundin Mining US will pay Lundin Mining $1 per tonne (t) of non-Eagle ore processed at the Humboldt Mill, up to a cumulative maximum of $20m.

The parties will further execute an investor rights agreement, granting Lundin Mining certain rights regarding director nominations, anti-dilution and the ability to participate on a pro-rata basis in any future Talon equity financings.

Lundin Mining will also sign a lock-up agreement under which its ability to acquire, sell, or otherwise dispose of Talon shares will be limited, with certain standard exceptions, for a period of up to 24 months.

Finally, a transitional services agreement will be put in place, under which Lundin Mining will provide Talon with transitional support services after the transaction closes.

Lundin added: “Lundin Mining acquired the Eagle Mine in 2013, and since the start of operations it has produced more than 194,000t of nickel and 185,000t of copper, generating more than $3.2bn in revenue as of Q3 2025 [third quarter of 2025], while delivering significant economic benefits to the region.

“This track record reflects the dedication, professionalism and strong safety culture of the Eagle team, and we extend our sincere thanks to everyone for their commitment and lasting contributions to the organisation.”

In April 2025, Lundin Mining completed the sale of its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden for a total consideration of up to $1.52bn (Skr14.15m).