Department of defense and Talon sign agreement to support domestic nickel exploration.
Talon Metals Corp. (“Talon” or the “Company”) (TSX:TLO), through its wholly owned subsidiary Talon Nickel (USA) LLC, has entered into a definitive agreement with the Department of Defense’s Office of Manufacturing Capability Expansion and Investment Prioritization to accelerate and expand the Company’s efforts to discover and secure additional domestic supply of nickel for the growing US battery manufacturing base and defense related supply chains.
Utilizing Defense Production Act (DPA) Title III authorities and funds appropriated by the Additional Ukraine Supplemental Appropriations Act, the Department of Defense will contribute funding on a cost-share basis to Talon’s in-house drilling and geophysics teams to purchase more equipment, hire additional employees and accelerate the Company’s efforts to discover and delineate more high-grade nickel deposits within the Midcontinent Rift geology of the United States.
As part of the agreement, the Department of Defense will contribute US$20,607,146 and Talon will contribute US$21,783,150 in matching funding on a cost-share basis (including, use of existing equipment and current employee cost) over a period of 39 months.
Henri van Rooyen, CEO of Talon said:
This funding makes clear that domestic supply of nickel is a national security priority.
“Congress and the Biden Administration have created powerful new tools to build-up domestic supply of critical minerals required for clean energy systems and national defense. With this funding, Talon will be able to accelerate our efforts to discover domestic sources of battery grade nickel and help ensure that the United States is not dependent on Russia, China or Chinese companies operating in countries like Indonesia for nickel that is needed in both defense platforms and clean energy systems.”
Highlights
- Funding underscores the long-term strategic importance of nickel for defense platforms, electric batteries and other clean energy systems.
- Aligns with Talon and US Geological Survey (USGS) view that the Midcontinent Rift in the Lake Superior region of Minnesota and Michigan is highly prospective for nickel sulfide deposits with potential for “district scale” mineralization.
- Deploys DPA Title III funding to build up domestic supply of nickel and secure American independence in the supply of critical minerals.
- Challenges Chinese and Russian dominance in supply of nickel for clean energy systems.
- If successful, would ensure that nickel produced for US defense requirements and battery supply chains is produced at high labor standards, environmental protections and participation of indigenous people.
- Utilizes best-in-class exploration practices to protect the natural environment where Talon’s exploration activities occur.
Mr. van Rooyen continued, “With this funding comes a responsibility to demonstrate that we can discover the necessary ingredients like nickel required for national defense systems and clean energy while also making sure we protect the environment, create good jobs, engage and listen to communities and seek the participation of tribal sovereign governments and their members.”
“Our team is ready to show that we can do things differently and achieve each of these objectives. It does not need to be a choice.”
Talon is currently exploring the Tamarack Intrusive Complex (TIC) in central Minnesota on a 24 hour a day basis with significant recent success. Talon also recently acquired the mineral rights contained in the historic Henry Ford Land package in the Upper Peninsula of Michigan proximate to the only operating nickel mine in the US. Talon is one of the few exploration and mine development companies that has its own in-house teams conducting drilling, geophysical analysis and geologic planning.
With Talon’s fleet of 5 drill rigs and in-house geophysicists, Talon is well positioned to use the funding from the Department of Defense to expand and accelerate its exploration activities in Minnesota and Michigan.
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DEPARTMENT OF DEFENSE AND TALON SIGN AGREEMENT TO SUPPORT DOMESTIC NICKEL EXPLORATION, Washington, D.C. September 12, 2023
