02:38 PM EDT, 05/28/2025 (MT Newswires) -- Talon Metals ( TLOFF ) on Wednesday said it has secured a site to develop its Beulah Minerals Processing Facility (BMPF). The site, near Beulah, North Dakota, is owned by Westmoreland Mining LLC.

The former coal mining site is set to be developed to process critical minerals for domestic defense and energy requirements, "reducing current dependence on China and Russia", a statement said. "This milestone marks a significant achievement in U.S. domestic critical mineral processing infrastructure for nickel and other key minerals," the statement added.

Under the terms of an option agreement signed, Talon will in consideration for the purchase option issue 15 million consideration options to Westmoreland to purchase Talon shares over three years. In relation to the purchase price, Talon will pay Westmoreland $0.50 per metric ton of ore delivered to the BMPF (with nickel bearing ore having a grade between 1% and 5%). Ore with a nickel grade of 1% or less will not attract a payment. Ore with a nickel grade over 5% will have a pro-rata increased payment. The purchase price is capped at $10 million.

The facility is supported by a US$115 million grant from the Department of Energy, as part of the U.S. strategy to reduce reliance on foreign-sourced critical minerals. Last December, Talon was also awarded US$2.47 million from the Defense Logistics Agency for research to increase mineral extraction efficiency.

The targeted start of construction is in 2027.

Talon's shares were last seen up $0.01, to $0.20, on the Toronto Stock Exchange.

Price: 0.20, Change: +0.01, Percent Change: +2.63