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Talon Metals (TSX:TLO) receives climate innovation funding from the US Department of Energy

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TSX:TLO
15 February 2022 13:15 (EDT)

Talon Metals (TLO) has received US$2.2 million in R&D funding from the US Department of Energy.

The Climate Innovation funding will be utilized to explore the carbon storage potential at the Tamarack Nickel Project in central Minnesota.

The Tamarack Nickel-Copper-Cobalt Project Tamarack is a nickel, copper, and cobalt project that is currently progressing towards feasibility studies. Talon operates the high-grade project in a joint venture with Rio Tinto.

Base metals explorer Talon currently owns 51 per cent majority interest in the project, with an earn-in right to acquire up to 60 per cent. The company must complete a feasibility study and pay US$10 million to Rio Tinto, to earn an additional 9 per cent interest (by March 2026).

Talon Metals is contributing orebody knowledge and land access for the scientific fieldwork.

Meanwhile, Rio Tinto will contribute US$4 million for the 3-year project, in addition to the funding from the Department of Energy’s ARPA-e Innovation Challenge. Rio Tinto will also lead a team of climate innovation and research leaders that will explore new approaches in carbon mineralization technology.

Carbon mineralization uses natural chemical reactions to convert captured carbon dioxide into rock and store it underground. The Tamarack Intrusive Complex has shown the potential to safely store hundreds of millions of tons of carbon during the initial studies.

“Talon is pleased to host this project here in Aitkin County Minnesota, which will be at the forefront of new approaches to climate science”, shared Henri van Rooyen, Talon Metals CEO.

 “Our aim is to deliver carbon storage solutions that can help to meet climate targets by reducing and offsetting emissions from our operations and in other industries”, stated Nigel Steward, Rio Tinto Chief Scientist.

 Looking at the market opportunity, Tamarack has the potential to be the USA’s only domestic source of high-grade nickel- a critical EV battery element. Notably, Talon has an agreement with Tesla under which it will supply 75,000 metric tonnes of nickel concentrate from the Tamarack Nickel Project over an estimated six-year period once commercial production begins.    

Talon Metals (TLO) is trading 1.6 percent up at 64 cents per share, as of 10:47 AM EST.

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