Defense Metals Closes Private Placement Financing
Defense Metals Closes Private Placement Financing
News Release - Vancouver, British Columbia – May 20, 2022: Defense Metals Corp. (“Defense
Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to announce
that it has closed a non-brokered private placement (the “Private Placement”) for gross proceeds
of $1,500,000, consisting of 4,545,456 flow-through common shares of the Company (each, a “FT
Share”) at a price of $0.33 per FT Share. Each FT Share is a “flow-through share” within the
meaning of the Income Tax Act (Canada) (the “Act”).
The proceeds of the Private Placement will be used for the exploration and development of the
Company’s Wicheeda Rare Earth Element Project located near Prince George, British Columbia.
In connection with the Private Placement, the Company paid aggregate cash finder’s fees of $90,000
and issued 272,727 non-transferable finder warrants to Glores Securities Inc. The finder warrants
are exercisable for a period of 24 months from issuance at a price of $0.33 per share.
All securities issued under the Private Placement are subject to a four month hold period in
accordance with applicable securities laws.
About the Wicheeda REE Project
The 100% owned 2,008-hectare Wicheeda REE Property, 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 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.
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).
About the Company
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 market, 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 Property located near Prince George, British Columbia, Canada. Defense Metals
Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in th e United
States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.
Contact Information - For more information, please contact:
Todd Hanas, Bluesky Corporate Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email: [email protected]
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.
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, use of proceeds, other statements
relating to the technical, financial, and business prospects of the Company, its projects, 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 metals (in particular, REE), anticipated costs and the ability to achieve 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, and that third party contractors, equipment and supplies and governmental and
other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and
in a timely manner. Such forward-looking information reflects the Company’s views with respect to future events and is
subject to risks, uncertainties and assumpt ions, including the risks and uncertainties relating to the interpretation of
exploration results, risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected
costs and expenses and those other risks filed u nder the Company’s profile on SEDAR at www.sedar.com. There is a
possibility that future exploration, development or mining results will not be consistent with the Company’s expectations.
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, failure to
secure personnel and equipment for work programs, adverse weather and climate conditions, failure to maintain all
necessary government permits, approvals and authorizations, the impact of Covid-19 or other viruses and diseases on the
Company’s ability to operate, the price of metals and commodity price fluctuations , failure to main tain community
acceptance (including First Nations), increase in costs, 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.