Talon Metals Corp. (TSX:TLO, OTC:TLOFF) told investors it has signed a definitive agreement with the US Department of Energy (DOE) setting the terms, conditions and performance milestones for $114,846,344 in grant funding created by the Bipartisan Infrastructure Law.
The company's shares traded 2.1% higher at C$0.24 shortly after midday in Toronto.
Talon noted in a statement that its Battery Minerals Processing Facility was selected by the DOE in 2022 as one of the projects that will receive funding to expand and secure the US domestic manufacturing of electric batteries for electric vehicles (EVs) and grid storage.
It added that the US Congress and President Biden have made responsible and sustainable domestic sourcing and processing of critical minerals like nickel a national priority.
"The Department of Energy has worked diligently to put this agreement in place, and we are grateful to be entrusted with this funding that reflects a bi-partisan, national priority to reduce America's dependence on foreign countries like Russia and China for critical minerals like nickel,” commented Talon CEO Henri van Rooyen.
“This agreement includes our commitments to engage with the local community in North Dakota to ensure community input and benefit sharing, develop a diverse workforce with our partners in organized labor and seek meaningful input from tribal sovereign nations in the region."
Talon said the definitive agreement will allow it to immediately begin accessing funding under the DOE award and sets specific milestones for the siting, design, permitting, community engagement, construction and commissioning of the Battery Minerals Processing Facility in Mercer County, North Dakota.
The processing facility will be capable of processing ore from multiple economically viable, operating sources in North America.
Under an agreement with Tesla Inc, the North Dakota facility will produce nickel in concentrate for the EV maker.
"We are committed to producing the necessary ingredients like nickel for the US battery supply chain while also protecting the environment and cultural resources where we operate,” Talon’s chief external affairs officer and head of climate strategy, Todd Malan, added.
“Now we can move forward with our partners to advance the planning and construction of the battery minerals processing facility in North Dakota."
Talon Metals is a TSX-listed base metals company developing the high-grade Tamarack nickel-copper-cobalt project located in central Minnesota.
~Updated with share price movement~
Contact the author at stephen.gunnion@proactiveinvestors.com