VANCOUVER, BC — December 19, 2025 — Leads & Copy — Lundin Mining Corporation has agreed to sell its subsidiary, Lundin Mining US Ltd., to Talon Metals Corp. for 275.2 million Talon shares, representing 18.4% of Talon’s issued and outstanding shares upon completion of the transaction.
The implied valuation of the share consideration is approximately US$83.7 million, based on the five-day volume-weighted average trading price of Talon’s common shares on the Toronto Stock Exchange (TSX) up to December 18, 2025. Following the transaction, Lundin Mining will increase its total holding in Talon to 19.99%.
The Board of Directors of Talon will be reconstituted to include two nominees from Lundin Mining: Jack Lundin and Juan Andrés Morel. Darby Stacey, current Managing Director of the Eagle Mine and Humboldt Mill, will become CEO and Director of Talon.
Jack Lundin, President and CEO, said the combination of Talon and Eagle would create a pure-play U.S. nickel company anchored by the Eagle Mine. He noted the transaction unlocks meaningful synergies, including leveraging the Humboldt Mill as a shared processing facility.
Lundin Mining acquired the Eagle Mine in 2013. Since operations began, the mine has produced over 194,000 tonnes of nickel and 185,000 tonnes of copper, generating over US$3.2 billion in revenue as of Q3 2025.
The combination of assets immediately creates a new pure play American nickel-copper producer with significant exploration upside. The company says that this is aligned with Lundin Mining’s strategy, further streamlining Lundin Mining’s portfolio to enable the Company to focus on delivering value at its larger scale primary copper mining operations in Brazil and Chile in addition to advancing the prolific Vicuña District.
Lundin Mining will maintain a meaningful ownership (19.99%) and upside in Talon post Transaction.
The company says that new development opportunity provides significant upside through the development of Tamarack and further exploration opportunities at Boulderdash and the Tamarack Vault zone.
The Transaction is expected to unlock value through shared infrastructure (Humboldt Mill) and additional Mineral Resources (Tamarack). Tamarack currently contains 8.6 million tonnes at 1.73% Ni in the indicated category and 8.5 million tonnes at 0.83% in the inferred category.
Recent drilling at Tamarack has outlined a new high-grade zone (the “Vault Zone”) below the existing Mineral Resource that has intercepted 47.33 metres of 11.01% Ni and 11.40% Cu along with other PGM’s.
The press release states that post Transaction Talon will have the potential to process critical minerals from multiple facilities, operating both the Humboldt Mill in Michigan and the future proposed Beulah minerals processing facility in North Dakota, and that Talon has received significant U.S. federal grant funding to support the expansion of domestic critical mineral resources.
Based on Lundin Mining’s 3-year production guidance, Eagle’s forecast copper production is currently guided to account for approximately 2% of the 2026 and 2027 consolidated copper production of the Company. Upon completion of the Transaction, Eagle’s production will no longer be included in the Company’s guidance.
Talon will acquire 100% of the outstanding shares of Lundin Mining US, a wholly-owned subsidiary of Lundin Mining which owns the Eagle Mine and Humboldt Mill, in exchange for 275,152,232 Talon shares that will result in Lundin Mining owning 19.99% of the outstanding shares of Talon on a post-closing non-diluted basis. Lundin Mining expects to use the equity accounting method for its shareholding in Talon.
Lundin Mining and Lundin Mining US will also enter into a Production Payment Agreement for ore that is processed through the Humboldt Mill that was not mined or produced from the Eagle Mine. Lundin Mining US will make ore delivery payments of US$1.00 per metric tonne of non-Eagle ore processed through the Humboldt Mill to Lundin Mining until the aggregate ore delivery payments equal the capped amount of US$20 million.
Lundin Mining and Talon will also enter into an Investor Rights Agreement pursuant to which Lundin Mining will be entitled to certain rights relating to: (i) director nomination; (ii) anti-dilution; and (iii) pro-rata participation in future equity financing activities of Talon. Lundin Mining will also enter into a Lock-Up Agreement pursuant to which the acquisition, sale or disposition of Talon shares by Lundin Mining will be restricted, subject to certain customary exceptions, for a period of up to 24 months.
Lundin Mining and Talon will also enter into a Transitional Services Agreement in relation to the provision of transitional services to be provided by Lundin Mining to Talon during a transitional period following closing.
The transaction is expected to close in early January 2026, pending TSX approval and other closing conditions.
Lundin Mining is a Canadian mining company headquartered in Vancouver with four operating mines in Brazil, Chile, and the USA. It produces commodities supporting modern infrastructure and electrification. Lundin Mining’s shares trade on the Toronto Stock Exchange (LUN) and Nasdaq Stockholm (LUMI).
Stephen Williams, Vice President, Investor Relations: +1 604 806 3074; Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50
Source: Lundin Mining
