Lundin Mining to sell Eagle mine to Talon for $84M

Lundin Mining (TSX: LUN) has agreed to sell its Eagle nickel-copper mine and Humboldt Mill in Michigan to fellow Canadian miner Talon Metals (TSX: TLO) in a share-based deal valued at almost $84 million.

Lundin will transfer its U.S. subsidiary, which owns the Eagle operation, to Talon in exchange for roughly 275 million Talon shares, valued around $83.7 million based on recent prices. This would leave Lundin with a 20% non-diluted stake in Talon.

Eagle is the only primary nickel mine currently operating in the U.S. and has produced more than 194,000 tonnes of the critical metal and 185,000 tonnes of copper since starting production, Lundin said.

“This transaction also unlocks meaningful synergies, including the opportunity to leverage the Humboldt Mill as a shared, centralized processing facility,” Lundin President and CEO Jack Lundin, said in a statement.

Home-grown producer

The deal positions Talon as a pure-play nickel-copper company with domestic processing assets, including Humboldt and a planned future facility in Beulah, N.D.

The mine generated more than $3.2 billion in revenue as of the third quarter of 2025, the company noted.

Talon will expand its board to 10 directors following the deal, adding two nominees from Lundin, while Darby Stacey, currently managing director of the Eagle mine and Humboldt Mill, will become Talon’s CEO and a director.

“The integration enables our combined team to advance our four strategic priorities in parallel – extending the Eagle mine life, accelerating exploration in Michigan and in Minnesota, advancing permitting at the Tamarack Nickel-Copper Project and the Beulah Minerals Processing Facility, and progressing engineering towards feasibility study and construction,” Talon’s current CEO, Henri van Rooyen, said in a separate statement.

Top-10 ambitions

Lundin acquired Eagle from Rio Tinto (NYSE, ASX, LSE: RIO) in 2013 and brought the mine into commercial production a year later.

The company said the sale will streamline its portfolio and sharpen its focus on larger copper operations in Brazil and Chile, while maintaining exposure to potential upside through Talon’s exploration assets, including the Tamarack nickel project in Minnesota.

The transaction aligns with Lundin’s broader strategy to move into the ranks of the world’s top 10 copper producers, with a target of producing 500,000 tonnes of copper and about 550,000 oz. of gold annually within three to five years.

That plan centres on brownfield expansions at core assets, including Candelaria and Caserones in Chile and Chapada in Brazil, alongside new developments in the Vicuña district straddling the Chile-Argentina border, home to the Josemaría and Filo del Sol projects.

The transaction is expected to close in early January 2026, subject to regulatory approvals, after which Eagle’s output will no longer be included in Lundin Mining’s production guidance.