(Reuters) - Mining investor Pallinghurst Group will acquire a 19.2% stake in electric-vehicle battery metal miner Talon Metals Corp for about $80.2 million, as it looks to tap the opportunity arising from growing demand for EVs to cut carbon emissions.
A global drive towards electrification of road transport to cut greenhouse gas emissions has pushed up prices and demand for battery metals such as lithium, nickel, cobalt and copper.
Pallinghurst, which did not own any Talon shares prior to the deal, said on Monday it will buy 133.6 million shares from Resource Capital Fund VI L.P at 60 cents per share and the deal is expected to close around Oct. 22.
The London-based investor said it was acquiring shares in the Canadian company for investment purposes and had no plans to buy or sell additional shares.
Pallinghurst also has stakes in Nouveau Monde Graphite and the Nemaska lithium project in Quebec.
Reporting by Sahil Shaw in Bengaluru; Editing by Shinjini Ganguli