Talon Metals (TSX: TLO) announced on Monday it plans to raise approximately C$24 million ($17.6 million) to fund the development of its Tamarack nickel-copper-cobalt project in Minnesota. Its shares, however, plummeted as investors digested its pricing.
The fundraising will be conducted via two separate financings: the first being a bought-deal private placement led by Canaccord Genuity for C$10 million, and the second a non-brokered placement for C$13.7 million.
The Canaccord-brokered financing will see Talon issue 45.46 million units priced at C$0.22 each, while the non-brokered offering comprises approximately 62.22 million units, to be issued under the same terms. Each unit contains one common share and one-half of a warrant, with each full warrant exercisable at $0.28 per share for a period of three years.
Talon Metals plunged 15.4% or C$0.04 at Monday’s open, taking its stock price to C$0.22,…
