Lundin Mining to sell Eagle nickel-copper mine to Talon Metals for about $84 million

Dec 18 (Reuters) - Canadian mining company Lundin Mining LUN.TO said on Thursday that it plans to sell its Eagle nickel-copper mine and Humboldt Mill to Talon Metals TLO.TO in exchange for shares, creating a pure-play American nickel-copper company.

Under the deal, Lundin will transfer its U.S. subsidiary, which owns the Eagle mine in Michigan, to Talon in return for about 275 million Talon shares, valued at roughly $83.7 million based on recent prices.

The transaction will leave Lundin owning about 20% of Talon on a non-diluted basis.

Eagle is currently the only primary nickel mine operating in the United States. Since production began, the mine has produced more than 194,000 tons of nickel and 185,000 tons of copper, generating more than $3.2 billion in revenue as of the third quarter of 2025, Lundin said.

After the transaction, Talon will be positioned to process critical minerals at multiple U.S. facilities, operating the Humboldt Mill in Michigan and planning a future processing facility in Beulah, North Dakota.

Following the deal, Talon's board will be expanded to 10 directors, with two nominees from Lundin. Darby Stacey, currently managing director of the Eagle mine and Humboldt Mill, will become Talon's chief executive and director.

Lundin said the transaction allows it to further streamline its portfolio and focus on its larger copper operations in Brazil and Chile, while retaining exposure to potential upside through Talon's exploration assets, including the Tamarack nickel project in Minnesota.

The deal is expected to close in early January 2026, subject to regulatory approvals. Upon completion of transaction, Eagle's production will no longer be included in Lundin Mining's production guidance.