Oct 24 (Reuters) - Canadian miner Talon Metals ( TLOFF )

said on Thursday it has made a new copper and nickel

mineralization discovery in Michigan.

The company's shares were up nearly 17% in morning trading.

Long-term demand for copper and nickel is expected to

increase in the coming years, with both metals playing a key

role in the renewable energy transition, including the

manufacturing process of electric vehicle batteries.

"U.S. leaders are laser focused on U.S. dependency on

critical minerals produced by foreign entities of concern.

Discovery of a potential new domestic resource of copper and

nickel is very timely," CEO Henri van Rooyen said.

Talon's mineral exploration activities in Michigan and

Minnesota are funded by the U.S. Department of Defense, which in

2023 said it would provide $20.6 million for accelerated

exploration in the two states.

Talon discovered the sources through the maiden drill hole

at its Boulderdash target, located in the Upper Peninsula of

Michigan. The company now plans to add more drill holes for

further evaluation.

The target is close to the Lundin Mining ( LUNMF )-owned

Eagle Nickel Mine, which is currently the only nickel mine

operating in the United States.