Talon Metals ($TLO) | High-Grade Domestic Nickel

Talon Metals is focused on discovering and developing the USA’s only high-grade nickel-copper resources for the domestic battery supply chain.

Talon’s Tamarack Nickel Project is one of only three high-grade nickel sulphide deposits discovered globally in the 21st century.

The publicly-traded company’s Tamarack Nickel Project has found themselves at the centre of the growing demand for domestic nickel production, fuelled by the rapidly growing electric vehicle and renewable energy sectors, and the mineral sourcing requirements that are linked to the EV incentives of the Inflation Reduction Act.

Capital Snapshot:

Talon’s shares are traded on the Toronto Stock Exchange (TSX) under the symbol ‘TLO’ and on the US OTC Exchange under the symbol ‘TLOFF’.

The company has a current market capitalization of approximately $135 million (CAD).

Major Shareholders:

• 15.7% - The Pallinghurst Group (Battery Metals Fund)

• 14.3% - Resource Capital Funds (Mining Private Equity Fund)

• 6% - Rio Tinto (One of world’s largest mining companies with a valuation of over $100 billion USD)

Company Highlights:

• Talon is the 51% owner and operator of the Tamarack Nickel Project in Minnesota where they have a joint venture with Rio Tinto, one of the world’s largest mining companies. Talon has the right to increase its ownership stake to 60%.

• Talon was selected by the US Department of Energy to receive a $114.8 million grant for the construction of a battery mineral processing facility in North Dakota.

• Last year, the US Department of Defense granted Talon $20.6 million to accelerate discovery and production of nickel in the United States.

• Talon has an off-take agreement with Tesla (NASDAQ:TSLA) for 165 million pounds of nickel over 6 years. Talon and Tesla will work together as partners to achieve commercial production by 2027.

• Talon’s high-grade resource at the Tamarack Nickel Project will give the project a significant cost advantage over other low-grade projects and international supply that do not qualify for IRA subsidies.

Overview: Domestic Nickel

• Nickel was added to the US Critical Minerals List in 2021.

• President Biden added nickel to the Defense Production Act Title III in 2022, opening new funding opportunities and positioning projects with DoD funding as a ‘national priority’.

• The transition to electric vehicles requires tremendous new supplies of nickel. “Nickel is our biggest concern for scaling lithium-ion cell production” - Elon Musk, 2021.

• The Inflation Reduction Act (IRA) prioritizes domestic and ally (Australia, Canada, Chile) mineral sourcing requirements for its $7,500 electric vehicle tax credit, which could lead to premium pricing for domestic-sourced nickel.

The products generated with the raw nickel that would flow from Talon’s Tamarack Nickel Project could theoretically net more than $26 billion in subsidies, just through federal tax credits created by the Inflation Reduction Act (IRA), according to research featured in the MIT Technology Review.

For company specific questions, request an introduction to connect with Talon Metals management.