/CNW/ - Defense Metals Corp. (" Defense Metals " or the " Company
Defense Metals Closes Oversubscribed
Private Placement of $6.1 Million
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER, BC
,
Dec. 8, 2022
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the
"
Company
") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce it has closed a
previously announced, oversubscribed non-brokered private placement financing (the "
Private
Placement
") for aggregate gross proceeds of
$6,094,020.66
, consisting of 12,364,172 flow-through
common shares of the Company (each, a "
FT Share
") at a price of
$0.28
per FT Share and
11,963,875 units of the Company (each, a "
Unit
") at a price of
$0.22
per Unit.
Each FT Share is a "flow-through share" within the meaning of the
Income Tax Act
(
Canada
) (the
"
Act
"). Each Unit consists of one common share of the Company and one-half of one common share
purchase warrant (each whole warrant, a "
Warrant
"). Each Warrant entitles the holder thereof to
purchase one common share of the Company at a price of
$0.32
for a period of 24 months from
closing.
The proceeds raised from the sale of the FT Shares will be used for advancing the Company's
Wicheeda Rare Earth Element ("
REE
") Project that qualify as "Canadian Exploration Expenditures"
(within the meaning of the Act) and the net proceeds raised from the sale of Units will be used for
the Wicheeda Project as well as for general corporate and working capital purposes.
In connection with the Private Placement, the Company paid aggregate cash finder's fees of
$258,047.55
and issued 1,017,476 non-transferable finder warrants to certain brokers, 366,882 of
which are exercisable at a price of
$0.22
per share and the remaining amount at a price of
$0.32
per common share for a period of 24 months from closing.
All securities issued under the Private Placement are subject to a four month hold period in
accordance with applicable securities laws.
Stock Options
The Company also announces the granting of incentive stock options ("
Options
") to certain of its
directors, officers and consultants to purchase up to an aggregate 5,400,000 common shares of the
Company at a price of
$0
.22 per common share for a period of three (3) years. 250,000 Options
granted to Bluesky Corporate Communications Ltd. will vest in stages over a period of 12 months in
equal portions every three months starting three months after the date of grant. The remaining
Options vest on the date of grant.
About the Wicheeda REE Project
The 100% owned 4,244-hectare Wicheeda REE Project, located approximately 80 km northeast of
the city of
Prince George, British Columbia
, is readily accessible by all-weather gravel roads and is
near infrastructure, including power transmission lines, the CN railway, and major highways.
The Wicheeda REE Project yielded a robust 2021 preliminary economic assessment technical report
(PEA) that demonstrated an after-tax net present value (NPV@8%) of
$517 million
, and 18%
IRR[1]. A unique advantage of the Wicheeda REE Project is the production of a saleable high-grade
flotation-concentrate. The PEA contemplates a 1.8 Mtpa (million tonnes per year) mill throughput
open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 19 year mine (project) life
producing and average of 25,423 tonnes REO annually. A Phase 1 initial pit strip ratio of 0.63:1
(waste:mill feed) would yield rapid access to higher grade surface mineralization in year 1 and
payback of
$440 million
initial capital within 5 years.
Qualified Person
The scientific and technical information contained in this news release as it relates to the Wicheeda
REE Project has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and
Consultant of APEX Geoscience Ltd. of
Edmonton, AB
, a director of Defense Metals and a
"Qualified Person" as defined in NI 43-101.
About
Defense Metals Corp.
Defense Metals Corp. is a mineral exploration and development company focused on the acquisition,
exploration and development of mineral deposits containing metals and elements commonly used in
the electric power markets, defense industry, national security sector and in the production of green
energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet
motors for electric vehicles. Defense Metals owns 100% of the Wicheeda Rare Earth Element
Deposit located near
Prince George, British Columbia
, Canada. Defense Metals Corp. trades in
Canada
under the symbol "DEFN" on the TSX Venture Exchange, in
the United States
, under
"DFMTF" on the OTCQB and in
Germany
on the Frankfurt Exchange under "35D".
For further information, please 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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful, including any of the securities in
the United States of America
. The securities
have not been and will not be registered under the United States Securities Act of 1933, as
amended (the "
1933 Act
") or any state securities laws and may not be offered or sold within
the
United States
or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the
1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an
exemption from such registration requirements is available.
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, statements that address the Private
Placement, the intended use of proceeds of the Private Placement, advancing the Wicheeda REE
Project, the Company's plans for its Wicheeda REE Project, and other statements relating to the
technical, financial and business prospects of the Company, its project and other matters. All
statements in this news release, other than statements of historical facts, that address events 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 statements are not guarantees of future performance and actual
results may differ materially from those in the forward-looking statements. 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, 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 results,
risks related to the inherent uncertainty of exploration and cost estimates, the potential for
unexpected costs and expenses and those other risks filed under the Company's profile on SEDAR
at
www.sedar.com
. 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 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 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 drilling results, litigation, and failure of
counterparties to perform their contractual obligations. The Company does not undertake to update
forward
looking statements or forward
looking information, except as required by law.
______________________________
1
Independent Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project, British Columbia, Canada, dated January 6, 2022, with an effective date of November
7, 2021, and prepared by SRK Consulting (Canada) Inc. is filed under Defense Metals Corp.'s Issuer Profile on SEDAR (www.sedar.com).
SOURCE
Defense Metals Corp.
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CNW 09:00e 08-DEC-22