Defense Metals Corp. Comments on Recent Third-Party Promotional Activity Materials pursuant to OTC Markets Request
Defense Metals Corp. Comments on Recent Third-Party Promotional Activity
Materials pursuant to OTC Markets Request
News Release - Vancouver, British Columbia – October 6, 2022: Defense Metals Corp. (“Defense
Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) has received a request by
the OTC Markets Group to comment on recent promotional activity related to the Company’s common
shares traded on the OTC Markets.
On October 3, 2022, the Company became aware that Resource Sto ck Digest produced and
disseminated a corporate profile published without the knowledge or consent of the Company. The
Company was not aware of these materials prior to receiving copies from OTC Markets. Neither the
Company nor its officers were involved, directly or indirectly, in the creation, distribution,
dissemination or payment for the promotional materials, including through any third-party service
provider.
The materials appear to provide an overview of the Company’s business and technical results that were
previously publicly disclosed and filed under the Company’s profile on SEDAR at www.sedar.com.
The materials are based upon information made available by the Company, including the Company’ s
news releases and investor presentations. The Company does not believe that the materials have had
an effect on the trading activity in the Company’s common shares. The Company had no editorial
control over the content or the materials that profile the Company. The Company has reviewed the
materials and while the materials may contain some speculative or promotional content it does not
consider the statements made in the materials to be materially false or misleading.
The Company has been advised by OTC Markets that OTC Markets takes the position that the
newsletter e -mail profiling the Company contains some promotional content and may encourage
investors to purchase its shares. The Company wishes to caution readers that some of the content in
the newsletter e-mails profiling the Company are speculative in nature. For more complete and specific
information regarding the Company, its prospects, and the risks associated with those prospects,
readers should consult the Company’s public filings on SEDAR, its website, and other reliable sources.
The Company encourages investors to contact their investment advisors prior to making any
investment.
Upon inquiry of Company management and to the best of its knowledge, none of the Company’s
officers, directors or greater than 10% shareholders, or any third -party service providers, have (i)
directly or indirectly been involved in the creation of, distribution of, or payment for the materials
related to the Company or its common shares or (ii) sold or purchased any of the Company’s securities
in the past 90 days.
Over the last year, the Company has engaged third-party providers for investor relations, public
relations, marketing, advertising and other related activities: Bluesky Corporate Communications Ltd.
(Todd Hanas), Digitonic Limited and S&A Caspian LLC. In addition, the Company hired Resource
Stock Digest to conduct interviews of the Company and provide banner ads on its website (but the
Company did not hire them to disseminate the recent newsletter article that was noted by the OTC
Markets nor did the Company have knowledge of it).
OTC Markets has further requested that the Company state whether, at any point, it has issued any
shares or convertible instruments allowing conversion to equity securities at prices constituting a
discount to the current market rate at the time of the issuance. From incorporation on October 5, 2016
to date, there have been numerous instances where the Company issued equity securities at prices
which constituted a discount to the market rate at the time of the issuance. All such issuances were
made in compliance with the pricing policies of the TSX Venture Exchange. Further information about
the Company and its previous financings and filings can be found on the Company’s SEDAR profile
at www.sedar.com.
About the Wicheeda REE Property
The 100% owned 4,244- 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 preliminary economic assessment technical report
(PEA) that demonstrated an after-tax net present value (NPV@8%) of $517 million, and 18% IRR1. 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 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 the United Stat es, under “DFMTF” on the
OTCQB and in Germany on the Frankfurt Exchange under “35D”.
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).
For further 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.
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 relating to the effect of the materials published by Resource
Stock Digest , 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 ac tual 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 actu al
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 t o 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 unanti cipated 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 , an
inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited
to, the effects of COVID -19 on 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.