US EV Batterysupply Chain: Talon Metals Acquires Exploration Rights from Sweetwater Royalties to Explore Historic Henry Ford Land Package in Michigan 400,000 Acre Land Package in a Highly Prospective Nickel District, Currently Host to the Only Operating High-Grade
US EV Batterysupply Chain: Talon Metals
Acquires Exploration Rights from Sweetwater
Royalties to Explore Historic Henry Ford Land
Package in Michigan
400,000 Acre Land Package in a Highly Prospective Nickel
District, Currently Host to the Only Operating High-Grade
Nickel Mine in the USA
Tamarack, Minnesota--(Newsfile Corp. - August 10, 2022) - Talon Metals Corp. (TSX: TLO) (OTC Pink:
TLOFF) ("
Talon
" or the "
Company
") is pleased to announce that it has entered into an option and earn-
in agreement (the
"Option Agreement"
) with UPX Minerals Inc. (a wholly-owned subsidiary of
Sweetwater Royalties) (
"UPX"
) to acquire up to an 80% ownership interest in the mineral rights over a
land package comprised of approximately 400,000 acres located in the Upper Peninsula of the State of
Michigan (the
"Michigan Nickel Properties"
). This land package covers a highly prospective terrain
within 1.7 miles (2.8km) of the high-grade Eagle Nickel Mine (the only active nickel mine in the USA
today) and is only 0.4 miles (0.6km) from the Humboldt Mill (the concentrator which currently processes
the raw nickel ore that is trucked from the Eagle Nickel Mine). The deal comes with a very large high
quality geophysical data package and access to historic drill core that contain multiple high-grade nickel
intercepts up to 7.4% Ni (i.e., similar grades to the Company's Tamarack Nickel Project in Minnesota,
USA). The land package was originally assembled by Henry Ford and owned for approximately 70 years
by the Ford Motor Company.
Johnny DeCooman, President and CEO of Sweetwater Royalties, said:
"After a competitive exploration
partner search, we selected Talon's proposal due to their track record for delivering exploration
success.
The Talon team have extraordinary in-house geophysics, geology and drilling capabilities to
advance several targets as already demonstrated by their success at the Tamarack Nickel Project in
Minnesota.
We believe that Talon is ideally positioned to identify and prove out numerous high-grade
nickel deposits near the only USA nickel processing facility."
Henri van Rooyen, CEO of Talon, said:
"Talon's acquisition of the Michigan Nickel Properties is
directly responsive to Senator Manchin and other national leaders on both sides of the aisle to take
urgent action to establish a battery mineral supply chain from mine to battery within the United States.
Talon will bring its proven approach to exploration and use cutting-edge technology to explore for new
high-grade nickel, iron and copper deposits in the Upper Peninsula of Michigan, currently the only
region in the United States that produces nickel."
Mr. van Rooyen continued:
"The USA currently has only two known high-grade nickel deposits: Talon's
Tamarack Nickel Project in Minnesota and the Eagle Nickel Mine in Michigan. These two exceptional
deposits of high-grade nickel are definitive proof of the nickel potential in the Lake Superior region;
notwithstanding this, the amount of modern exploration of this nickel bearing region is miniscule in
comparison to other nickel districts around the world. Talon's experienced team of 'nickel hunters' has
the benefit of technologies only dreamed of prior to 2020: new technologies mean faster data
collection, processing, interpretation and drilling, culminating in the ability to generate and test a
much larger number of high priority targets simultaneously."
"Not only is Talon taking an innovative approach to discovery of high-grade battery nickel and battery-
grade iron deposits in the USA for various battery chemistries (including NMC, NCA and LFP
batteries), but Talon is also taking an industry leading approach to protecting the environment,
partnering with unions and building broad-based community support where we operate,"
Mr. van
Rooyen commented.
Sean Werger, President of Talon, commented:
"Opportunities to obtain exploration rights in a proven
prospective area like the Upper Peninsula of Michigan are rare. Henry Ford had the foresight to
assemble this package of land as part of his integrated supply chain strategy as he helped the USA
transition to motorized transportation. Now, Talon will explore that same land package for the battery
minerals that are needed in the United States battery supply chain as the nation again fundamentally
changes our transportation to electric vehicles,"
said Sean Werger, President of Talon.
Mr. Werger continued:
"Nickel has been declared a critical mineral of national importance by
President Biden and added to the authorities under the Defense Production Act. The Senate passed
the Inflation Reduction Act of 2022 a few days ago and the House is expected to send it to President
Biden for signature in a vote on Friday of this week. The bill includes numerous incentives for EV
adoption that are linked to the production of battery materials like nickel in the USA and from allies
that have free trade agreements with the USA.
Much of the new investment in USA battery
manufacturing announced over the last year depends on nickel chemistry. By surgically targeting
high-grade nickel mineralization with our unique exploration capability in both Michigan and
Minnesota, Talon is helping to build EV battery supply chain security for the United States."
Agreement between Talon and UPX:
Talon has entered into an Option Agreement with UPX to acquire up to an 80% ownership interest in the
Michigan Nickel Properties. Pursuant to the terms of the Option Agreement, Talon has agreed to a
minimum spending obligation of up to US$5 million in exploration expenditures or drilling of at least
7,500 meters.
Talon has five years (until August 2027) to complete these minimum requirements. Talon
will earn a 51% undivided interest in the Michigan Nickel Properties upon the completion of 25,000
meters of drilling (the
"Stage One Requirement"
). Talon will have five years (until August 2027) to
complete the Stage One Requirement, which may be extended in certain circumstances.
Talon will then have the option to earn an additional 29% interest in the Michigan Nickel Properties
(resulting in an 80% ownership interest) upon delivering a Feasibility Study prepared in accordance with
National Instrument 43-101 over a portion of the Michigan Nickel Properties (the
"Stage Two
Requirement"
). In the event that Talon does not complete the Stage Two Requirement within eight-
years (which may be extended in certain circumstances) of determining a "mineral resource" at the
Michigan Nickel Properties, Talon's interest in the Michigan Nickel Properties will revert to 49%.
On execution of the Option Agreement, and as partial consideration for entering into the Option
Agreement, Talon will issue Kennecott Exploration Company ("
KEX
") 15,321,933 common shares of
Talon at a deemed price of $0.51 per share (based on the 5-day VWAP of the Talon shares on the TSX)
in satisfaction of US$6 million plus interest in payment obligations of UPX to KEX as a previous owner
of the Michigan Nickel Properties. This share issuance is subject to the approval of the Toronto Stock
Exchange. Upon Talon completing the Stage Two Requirement, UPX will be granted a 2% NSR royalty
on the Michigan Nickel Properties and have the right to participate in proportion to its participating 20%
joint venture interest or dilute its interest to an additional 1% NSR royalty.
ABOUT TALON
Talon is a TSX-listed base metals company in a joint venture with
Rio Tinto
on the high-grade
Tamarack
Nickel-Copper-Cobalt Project
located in central Minnesota. Talon's shares are also traded in the US
over the OTC market under the symbol TLOFF. The Tamarack Nickel Project comprises a large land
position (18km of strike length) with high-grade intercepts
outside the current resource area
. Talon has
an earn-in right to acquire up to 60% of the Tamarack Nickel Project, and currently owns 51%. Talon is
focused on (i) expanding and infilling its current high-grade nickel mineralization resource prepared in
accordance with NI 43-101 to shape a mine plan for submission to Minnesota regulators, (ii) following up
on additional high-grade nickel mineralization in the Tamarack Intrusive Complex, and (iii) exploring the
prospects for significant carbon storage in the ultra-mafic rocks that comprise the Tamarack Intrusive
Complex through carbon mineralization.
Talon has an agreement with Tesla Inc.
to supply it with 75,000
metric tonnes (165 million lbs) of nickel in concentrate (and certain by-products, including cobalt and
iron) from the Tamarack Nickel Project over an estimated six-year period once commercial production is
achieved. Talon has well-qualified experienced exploration, mine development, external affairs and mine
permitting teams.
For additional information on Talon, please visit the Company's website at
www.talonmetals.com
or
contact:
Media Contact:
Todd Malan
1 (202) 714-8187
Investor Contact:
Sean Werger
1 (416) 361-9636 x102
QUALIFIED PERSON
Dr. Etienne Dinel, Vice President, Geology of Talon, is a Qualified Person within the meaning of National
Instrument 43-101. Dr. Dinel is satisfied that the analytical and testing procedures used are standard
industry operating procedures and methodologies, and he has reviewed, approved and verified the
technical information disclosed in this news release, including sampling, analytical and test data
underlying the technical information.
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements". All statements, other than statements
of historical fact that address activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future are forward-looking statements. These forward-looking
statements reflect the current expectations or beliefs of the Company based on information currently
available to the Company. Such forward-looking statements include statements relating to the
Company's ability to earn up to an 80% interest in the Michigan Nickel Properties from UPX; the
geological and exploration potential of the Michigan Nickel Properties, including the potential for
numerous high-grade nickel deposits therein; the Company's ability and success in using new
technologies for exploration; the passing into law of the Inflation Reduction Act of 2022; and the issuance
of common shares to KEX, including the approval of the Toronto Stock Exchange. Forward-looking
statements are subject to significant risks and uncertainties and other factors that could cause the actual
results to differ materially from those discussed in the forward-looking statements, and even if such
actual results are realized or substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on the Company.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be
required by applicable securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent uncertainty therein.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/133339