Homeland Nickel (TSXV: SHL) has signed a binding offtake agreement with Westwin Elements covering nickel from its Red Flat project in southern Oregon, giving the US refiner its first direct mine source of domestic feed.
Under the agreement, Westwin would take an estimated 20,000 tonnes of nickel concentrate per year, mined and concentrated by Homeland at Red Flat. The offtake is exclusive to Red Flat, though Westwin could also secure offtake from Homeland’s other Oregon properties.
The deal also sets out how the project moves forward. Homeland is responsible for completing an updated mineral resource estimate and a preliminary economic assessment. Once Westwin is satisfied with the PEA results, it will fully fund a bankable feasibility study, including permitting, drilling, environmental assessment and more detailed economic analysis.
“We still have a long way to go before we are mining at Red Flat,” said Homeland President and CEO Steve Balch. “Our updated MRE is underway and does not require more permitting or drilling to complete. The same goes for the PEA.”
Homeland expects to deliver both reports in the first or second quarter of 2027. Westwin will then have 90 days to review them and begin the feasibility study.
Westwin produces high-purity Class 1 nickel using carbonyl refining technology and bills itself as the only Class 1 nickel refinery in the US. The Red Flat agreement is meant to supply its planned full-scale refinery and does not alter Westwin’s existing feedstock arrangements with third parties.
Founder and CEO Kaleigh Long called the deal a step toward a fully domestic nickel supply chain, linking production from Oregon with American refining capacity serving manufacturers and the defense industrial base.
The two companies first signed a non-binding memorandum of understanding in May.
Red Flat consists of 84 lode mining claims covering 2,015 acres on federal land administered by the Bureau of Land Management, roughly 15 km southeast of Gold Beach. The property hosts a historical resource of 18.8 million tons grading 0.84% nickel, including 10.4 million tons of measured and indicated resources at 0.88% nickel. Homeland also flagged a cobalt component that was assayed during exploration work from 2007 to 2009 but never disclosed in the historical estimate.
Homeland Nickel last traded at $0.47 on the TSX Venture.
