Defense Metals - Chairman Message For 2025
Defense Metals - Chairman Message For 2025
VANCOUVER, BC
,
Jan. 6, 2025
/CNW/ -
Defense Metals Corp.
("
Defense Metals
" or the "
Company
";
(TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) today issued a letter to shareholders from its Executive
Chairman, Guy de Selliers, highlighting recent developments and the progress of the pre-feasibility study
for the Company's Wicheeda Project. The full letter is embedded in this news release below.
Dear Shareholders,
As we start 2025, my colleagues and I at Defense Metals look forward to the year ahead with confidence
and optimism. We take pride in having dealt with the legacy challenges of the last year and believe
Defense Metals is now poised to make significant progress in developing our world class Wicheeda rare
earths deposit.
As previously announced, our pre-feasibility study results are expected to be released in early February.
Hatch has been appointed to manage the pre-feasibility process and to act as qualified person for the
overall study with the support of SRK and other world-renowned experts. This gives assurance that this
pre-feasibility study will provide reliable numbers to assess the economic potential of our project.
We have a strengthened management team led by our new CEO,
Mark Tory
. He brings a wealth of
experience in the management of mining companies, including in the rare earths industry. We have also a
number of new full-time employees in particular
Alex Heath
as SVP strategy and interim CFO and
Michelle
Tanguay
, responsible for environment, regulatory and social performance.
Our Board is composed of experienced directors with strong track records. I assumed the position of
Executive Chairman last summer.
Suzanne Rich Folsom
, who has served as General Counsel of some of
the largest companies in the U.S., joined last July.
Luisa Moreno
,
Dale Wallster
and
Ted Kavanagh
continue as active members as well. We also have a Resource Capital Funds observer on the board,
which illustrates the strong support we enjoy from our largest institutional investor.
Having raised
C$4 million
in October, we have the resources necessary to finalise our pre-feasibility study.
I personally invested more than
C$1.7 million
as part of that fundraise. Because of the urgency of raising
these funds and the difficult market conditions, this was done through a secured convertible note. I would
like to stress that these notes automatically convert to equity in the context of any future equity financing
over
C$4 million
in order to eliminate any debt overhang that could be of concern to investors.
We maintain strong relationships with all key stakeholders, including the McLeod Lake Indian Band whose
traditional territories host our deposit, as well as with Government authorities in
Canada
, at both Federal
and provincial level, in
the United States
, and in
Europe
. Recent geopolitical developments and the
increasing concerns about the persistent and excessive over-reliance on
China
for rare earth supplies
opens many possibilities for technical cooperation and financial support from industry and government
entities. Additionally, systemic forms of support from Governments through tariffs and other policy
initiatives could underpin and stabilise the market prices for our products. We are in active discussion with
prestigious government-backed research institutions such as Saskatchewan Research Council in
Canada
and Oak Ridge National Laboratory in the U.S. We have also applied for grant funding in both countries
and are optimistic that some of these will materialise soon.
We are in constructive discussions with a number of potential partners and off-takers, many of whom have
received samples of our concentrate/carbonate produced during pilot plant testing. Rather pleasingly, all
sample recipients have reacted positively and confirmed their potential interest.
Finally, the rare earths reference price has started to recover from the last summer's lows and is
projected to continue to do so as forecasted by Argus in a recent report and by most analysts. Our share
price has also now rebounded quite substantially.
We have everything it takes to be successful in developing the Wicheeda deposit which is one of the very
best deposits in
North America
. It has good grade, spectacular mineralogy allowing us to produce a very
high-grade mineral concentrate, great location with access to infrastructure and to skilled labour force, and
supportive government and great relations with our First Nation partner.
Dear Shareholders, I am well aware that you might have been disappointed by Defense Metals
performance in the past, but I believe that the stars are now aligned for a dramatically improved
performance in the future. I have more than 40 years of experience in developing mining projects around
the world and I know that it is always challenging, that it takes longer than expected and, that it is full of
surprises. But in this case, I am extremely bullish and I hope that you, as shareholders, will see why and
will continue to travel with us on this exciting journey.
I wish you a prosperous and happy New Year.
Guy de Selliers
Executive Chairman – Defense Metals Corp.
About Defense Metals Corp. and its Wicheeda Rare Earth Element Project
Defense Metals Corp. is focused on the development of its 100% owned, 11,800-hectare (~29,158-acre)
Wicheeda REE Project that is located on the traditional territory of the McLeod Lake Indian Band in
British
Columbia, Canada
.
The Wicheeda REE Project, approximately 80 kilometres (~50 miles) northeast of the city of
Prince
George
, is readily accessible by a paved highway and all-weather gravel roads and is close to
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
.
For further information, please visit
www.defensemetals.com
or contact:
Alex Heath
Senior Vice President, Corporate Development & Interim CFO
Tel: +1 604-354-2491
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, the use of net proceeds from the Private Placement, final TSXV approval
of the Private Placement, 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
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 and
metallurgical results, risks related to the inherent uncertainty of exploration and development and cost
estimates, the potential for unexpected costs and expenses and those other risks filed under the
Company's profile on SEDAR+ (
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 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 or obtain 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, engineering and pricing assumptions,
decrease in the price of rare earth elements, the impact of viruses and diseases on the Company's ability
to operate, restriction on labour and international travel and supply chains, loss of key employees,
consultants, officers or directors, increase in costs, delayed 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.
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%SEDAR: 00042886E
CO: Defense Metals Corp.
CNW 18:00e 06-JAN-25