/CNW/ - Defense Metals Corp. (" Defense Metals " or the " Company
Defense Metals Announces McLeod Lake
Indian Band Co-Design Agreement and
Partnership Investment
/Not for distribution to U.S. newswire services or for dissemination in
the United States
/
VANCOUVER, BC
,
Jan. 17, 2024
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the
"
Company
"; (TSXV: DEFN) (OTCQB: DFMTF) (FSE:35D) is pleased to announce that it has
entered into a Co-Design Agreement (the "
Agreement
") with the McLeod Lake Indian Band
("
MLIB
"), regarding ongoing project development of Defense Metals' 100% owned Wicheeda Rare
Earth Element Project (the "
Wicheeda Project
") located 80 kilometres northeast of
Prince George,
British Columbia
.
The Co-Design Agreement
Pursuant to the Agreement, Defense Metals will collaborate on the design of the Wicheeda Project
with MLIB. Collaboration will incorporate MLIB's interests and priorities in the planning and design of
future feasibility studies and the environmental assessment process and include MLIB involvement in
certain technical studies related to the Wicheeda Project. Comprehensive budgets and workplans
are to be cooperatively developed and incorporated into the process. In addition, Defense Metals
will make an upfront payment to MLIB, fund certain of MLIB's costs of participating in review
activities and support MLIB Members in attending post-secondary training in a mining-related field.
Central to this collaboration is the Wicheeda Project's integral role in supporting
British Columbia's
contribution to the clean energy transition. With a targeted annual production equivalent to
approximately 10% of current global production, the project has the potential to become a significant
supplier of rare earth elements.
MLIB Partnership Investment
Defense Metals Corp. also announces that MLIB has agreed to make a strategic investment into
Defense Metals by way of a non-brokered private placement financing of 2,557,795 common shares
of the Company at a price of
$0.26
per share (the "
Offering Price
"), for aggregate proceeds of
$665,026.70
(the "
Offering
"). In consideration for RCF Opportunities Fund II L.P. ("
RCF
") agreeing
to subscribe as lead order in a previous private placement (see Defense Metals news release of
April 27, 2023
) RCF was granted the right to participate in subsequent equity or debt financings of
the Company on a pro rata basis based on RCF's ownership stake (determined on a partially diluted
basis immediately prior to the proposed financing), while RCF's ownership in the company is greater
than or equal to five (5) per cent (determined on a partially diluted basis). If RCF elects to
participate in the Offering, in accordance with their existing participation rights, the Company may
issue up to an additional 283,883 common shares at the Offering Price for additional gross proceeds
of up to
$73,809.58
.
It is intended that the Offering will be completed promptly following TSX Venture Exchange approval.
In addition to the statutory hold period of four months and one day, the common shares issued under
the Offering will be subject to a two-year voluntary hold period from the date of issuance. The
Company intends to use the net proceeds of the Offering towards advancing the Wicheeda Project.
The common shares of the Company have not been, and will not be, registered under the U.S.
Securities Act of 1933, as amended (the "
U.S. Securities Act
"), or any U.S. state securities laws
and may not be offered or sold in
the United States
absent registration or an available exemption
from the registration requirements of the U.S. Securities Act and applicable U.S. state securities
laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor
shall there by any sale of the securities referenced in this press release, in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
Qualified Person
Kristopher J. Raffle, P.Geo. (B.C.), Principal and Consultant of APEX Geoscience Ltd. of
Edmonton,
Alberta
, and a "Qualified Person" as defined in NI 43-101 has reviewed and approved the scientific
and technical information and verified the data contained in this news release as it relates to the
Wicheeda Project.
About Defense Metals Corp. and its Wicheeda Rare Earth Element Project
Defense Metals Corp. is a mineral exploration and development company focused on
the development of its 100% owned, 8,301-hectare (~20,534-acre) Wicheeda Project that is located
on the traditional territory of the McLeod Lake Indian Band in British Columbia,
Canada
.
The Wicheeda Project, approximately 80 kilometres (~50 miles) northeast of the city of
Prince
George
, is readily accessible by all-weather gravel roads and has nearby infrastructure, including
hydro power transmission lines and gas pipelines. The nearby Canadian National Railway and major
highways allow easy access to the port facilities at
Prince Rupert
, the closest major North American
port to
Asia
.
Defense Metals Corp. trades on the TSX Venture Exchange under the symbol "DEFN", in
the United
States
, trading symbol "DFMTF" on the OTCQB and in
Germany
on the Frankfurt Exchange under
"35D".
Defense Metals is a proud member of Discovery Group. For more information please visit:
http://www.discoverygroup.ca/
For further information, please visit
www.defensemetals.com
or contact:
Todd Hanas
, Bluesky Corporate Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Cautionary Statement Regarding "Forward-Looking" Information
This news release contains "forward
looking information or statements" within the meaning of
applicable securities laws, which may include, without limitation, any statements (expressed or
implied) relating to: advancing the Wicheeda Project, including the prospective feasibility study and
the environmental assessment process, technical studies, and related matters, the expected timeline
of advancing the Wicheeda Project, the expected targeted annual production, the Offering, RCF's
participation in the Offering, approval of the TSX Venture Exchange, the use of net proceeds from
the Offering, obligations and commitments under the Agreement and related objectives, the
technical, financial and business prospects of the Company, its project and other matters. Forward-
looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate,"
"intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible,"
"potential," "predict," "should," "would" and other similar words and expressions, but the absence of
these words does not mean that a statement is not forward-looking. All statements in this news
release, other than statements of historical facts, that address events, contribution or developments
that the Company expects to occur, are forward-looking statements.
Although the Company believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such forward-looking statements are not guarantees of future
performance and actual results may differ materially due to the risks and uncertainties associated
with and inherent to the Company's business and the Wicheeda Project. Such statements and
information are based on numerous assumptions regarding present and future business strategies
and the environment in which the Company will operate in the future, including the price of rare earth
elements, the anticipated costs and expenditures, accuracy of assay results, performance of
available laboratory and other related services, future operating costs, interpretation of geological,
engineering and metallurgical data, the ability to achieve its goals, that general business and
economic conditions will not change in a material adverse manner, that financing will be available if
and when needed and on reasonable terms. Such forward-looking information reflects the
Company's views with respect to future events and is subject to risks, uncertainties and
assumptions, including the risks and uncertainties relating to the interpretation of exploration,
engineering and metallurgical results, risks related to the inherent uncertainty of exploration,
metallurgy and development and cost estimates, the potential for unexpected costs and expenses
and those other risks filed under the Company's profile on SEDAR+ at
www.sedarplus.ca
.
While such estimates and assumptions are considered reasonable by the management of the
Company, they are inherently subject to significant business, economic, competitive and regulatory
uncertainties and risks. Factors that could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, continued availability of capital and
financing and general economic, market or business conditions, adverse weather and climate
conditions, failure to maintain or obtain all necessary government permits, approvals and
authorizations, failure to maintain community acceptance (including First Nations), risks relating to
unanticipated operational difficulties (including failure of equipment or processes to operate in
accordance with specifications or expectations, cost escalation, unavailability of personnel, materials
and equipment, government action or delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related to health, safety and
environmental matters), risks relating to inaccurate geological, metallurgical and engineering
assumptions, decrease in the price of rare earth elements, the impact of Covid-19 or other viruses
and diseases on the Company's ability to operate, the price of commodities, capital market
conditions, restriction on labour and international travel and supply chains, loss of key employees,
consultants, or directors, increase in costs, delayed results, litigation, and failure of counterparties to
perform their contractual obligations. The forward-looking statements contained in this press release
are made as at the date hereof and the Company does not undertake to update publicly or to revise
any of the included forward-looking statements or forward-looking information, whether as a result of
new information, future events, or otherwise, except as may be required by applicable securities
laws.
SOURCE
Defense Metals Corp.
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CO: Defense Metals Corp.
CNW 05:00e 17-JAN-24