Lundin Mining (LUN.TO) late on Thursday said it has agreed to sell its subsidiary Lundin Mining US, which indirectly holds the Eagle Mine and Humboldt Mill, to Talon Metals.

In exchange, Talon will issue 275.2 million of its shares to Lundin, representing 18.4% of Talon's issued and outstanding shares. The implied valuation of the share consideration is about US$83.7 million, based on the five-day volume-weighted average trading price of Talon shares up to Dec. 18.

The combination of Talon and Eagle will create a pure-play U.S. nickel-copper producer. The Eagle Mine is the only primary nickel mine currently operating in the U.S.

At deal closing, Lundin will have increased its total holding in Talon to 19.99% of the issued and outstanding Talon shares.

Talon's board will also be reconstituted to 10 directors with two nominees from Lundin, being Jack Lundin and Juan Andres Morel. Darby Stacey, the managing director of Eagle Mine, and Humboldt Mill, will be named CEO and director of Talon.

Talon will continue to be publicly listed on the Toronto Stock Exchange under the symbol TLO after deal closing.

The deal is expected to close in early January 2026, subject to receipt of TSX approval and the satisfaction of other customary closing conditions.