Defense Metals Corp. Closes Private Placement
Defense Metals Corp. Closes Private
Placement
VANCOUVER
,
April 29, 2020
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
")
(TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to announce that further to its news release
on
April 20, 2020
, it has closed a non-brokered private placement of 5,980,000 units (each a "
Unit
")
for gross proceeds of
$598,000
(the "
Private Placement
"). As previously disclosed, each Unit was
priced at
$0.10
and is comprised of one common share and one transferable common share
purchase warrant ("
Warrant
"). Each Warrant is exercisable to purchase one common share of the
Company at a price of
$0.15
per share for a period of 24 months from the date of closing the
Private Placement.
The Company paid aggregate cash finder's fees of
$16,310
and issued 163,100 non-transferable
finder warrants to certain brokers on a portion of the Private Placement. The finder warrants
otherwise have the same terms as the Warrants.
All securities issued pursuant to the Private Placement are subject to a four month hold period from
the closing date in accordance with applicable securities laws.
The proceeds from these Private Placement will be used for exploration on the Company's
Wicheeda rare earth element project located in
Prince George, British Columbia
and for general
working capital purposes.
The Company intends to close an additional non-brokered private placement of up to 1,000,000 units
at a price of
$0.11
per unit for gross proceeds of up to
$110,000
. Each unit will be comprised of one
common share and one Warrant.
About Defense Metals Corp.
Defense Metals Corp. is an advanced mineral exploration company focused on the acquisition of
mineral deposits containing metals and elements commonly used in the electric power market,
military, national security and the production of "GREEN" energy technologies, such as, high strength
alloys and rare earth magnets. Defense Metals has an option to acquire 100% of the 1,708 hectare
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
the United States
, under "DFMTF" on the OTCQB and in
Germany
on the Frankfurt Exchange under
"35D".
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 includes certain statements that constitute "forward-looking information or
statements" within the meaning of applicable securities law, including without limitation, Defense
Metals' plans for its properties/projects, the use of funds from the Private Placement, anticipated
closing of an additional private placement, other statements relating to the technical, financial and
business prospects of Defense Metals, and other matters.
Forward-looking statements address future events and conditions and are necessarily based upon a
number of estimates and assumptions. These statements relate to analyses and other information
that are based on forecasts of future results, estimates of amounts not yet determinable and
assumptions of management. Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as "expects" or "does not expect",
"is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that
certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur
or be achieved), and variations of such words, and similar expressions are not statements of
historical fact and may be forward-looking statements. Forward-looking statement are necessarily
based upon a number of factors that, if untrue, could cause the actual results, performances or
achievements of Defense Metals to be materially different from future results, performances or
achievements express or implied by such statements. Such statements and information are based
on numerous assumptions regarding present and future business strategies and the environment in
which Defense Metals will operate in the future, including the price of metals and elements,
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 Defense Metals' planned exploration activities will be available
on reasonable terms and in a timely manner. While such estimates and assumptions are considered
reasonable by the management of Defense Metals, they are inherently subject to significant
business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause
actual events, level of activity, performance or results to differ materially from those reflected in the
forward-looking statements, including, without limitation: (i) risks related to rare earth elements, and
other commodity price fluctuations; (ii) risks and uncertainties relating to the interpretation of
exploration results; (iii) risks related to the inherent uncertainty of exploration and cost estimates and
the potential for unexpected costs and expenses; (iv) that resource exploration and development is a
speculative business; (v) that Defense Metals may lose or abandon its property interests or may fail
to receive necessary licences and permits; (vi) that environmental laws and regulations may
become more onerous; (vii) that Defense Metals may not be able to raise additional funds when
necessary; (viii) the possibility that future exploration, development or mining results will not be
consistent with Defense Metals' expectations; (ix) exploration and development risks, including risks
related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with
or interruptions in exploration and development; * competition; (xi) the potential for delays in
exploration or development activities or the completion of geologic reports or studies; (xii) the
uncertainty of profitability based upon Defense Metals' history of losses; (xiii) risks related to
environmental regulation and liability; (xiv) risks associated with failure to maintain community
acceptance, agreements and permissions (generally referred to as "social licence"), including local
First Nations; (xv) risks relating to obtaining and maintaining all necessary government permits,
approvals and authorizations relating to the continued exploration and development of Defense
Metals' projects; (xvi) risks related to the outcome of legal actions; (xvii) political and regulatory risks
associated with mining and exploration; (xix) risks related to current global financial conditions; and
(xx) other risks and uncertainties related to Defense Metals' prospects, properties and business
strategy. These risks, as well as others, could cause actual results and events to vary significantly.
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, the loss of key directors, employees, advisors or consultants,
adverse weather conditions, increase in costs, equipment failures, litigation, failure of counterparties
to perform their contractual obligations and fees charged by service providers. Investors are
cautioned that forward-looking statements are not guarantees of future performance or events and,
accordingly are cautioned not to put undue reliance on forward-looking statements due to the
inherent uncertainty of such statements. The forward-looking statements included in this news
release are made as of the date hereof and Defense Metals disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, except as expressly required by applicable securities legislation.
SOURCE
Defense Metals Corp.
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For further information:
Todd Hanas, Bluesky Corporate Communications Ltd., Vice President,
Investor Relations, Tel: (778) 994 8072, Email: [email protected]
CO: Defense Metals Corp.
CNW 08:00e 29-APR-20