Lundin to option Talon's Cu, Ni US exploration site

Market: Metals
06/03/25

Canada-based firm Lundin Mining has agreed to negotiate an earn-in deal with US-based mining company Talon Metals for the right to buy a majority stake in Talon's Boulderdash exploration site in Michigan, US.

Lundin Mining could buy a 70pc stake in the Boulderdash site, which is next to Lundin's Eagle nickel and copper mine.

Nickel and copper was first found at the exploration site in October last year. Recent drilling found copper and nickel deposits with grades of 2.95pc and 2.33pc, respectively.

Along with signing the agreement, Lundin has given Talon a $5mn advance to start further drilling at Boulderdash.

Lundin plans to fund up to 30,000m of drilling at Boulderdash for a 44.625pc stake. The drilling will be done in 10,000m phases.

After completing the 30,000m, Lundin Mining would fund a feasibility study for an additional 25.375pc stake, which would give Lundin 70pc ownership.

And Lundin will have the option to have 90pc ownership in nearby properties.

If the two firms do not complete an agreement, Talon will either repay the $5mn advance or issue shares to Lundin.

The Eagle mine and the adjacent Boulderdash site are linked by road to the Humboldt processing mill. The Eagle mine is forecast to produce 8,000-11,000t each of nickel and copper this year, according to Lundin's production guidance.

By Ellanee Kruck

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Lundin to option Talon's Cu, Ni US exploration site

Related news posts

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