5N Plus (VNP.TO) said Thursday it will receive a $7.3 million award from the US Department of War to establish domestic production of gallium arsenide components for US defense use.
The award follows 5N+ presenting a proposal late August, the company said.
Gallium arsenide (GaAs) is a semiconductor material used in advanced sensing systems and will be produced at 5N+'s Utah facility.
"Our selection by the US government recognizes 5N+ as a trusted strategic partner to the US defence industrial base, with the proven expertise and ability to support critical national security priorities," said Chief Executive Officer Richard Perron.
"This award will enable us to establish a secure domestic source for an immediate defence requirement, while also creating a scalable platform to pursue significant long-term market opportunities across a broader range of defence and space applications over time," he added.
5N+ is headquartered in Montreal, Quebec. Its shares were last seen up CA$0.51 at CA$24.39 on the Toronto Stock Exchange.
Price: $24.31, Change: $+0.43, Percent Change: +1.80%