Defense Metals Receives Letter of Interest for Potential US$250 Million in Project Financing
Defense Metals Receives Letter of Interest for Potential US$250
Million in Project Financing
VANCOUVER, BC
,
June 4, 2025
/CNW/ - Defense Metals Corp. ("Defense Metals" or the "Company"; (TSXV: DEFN) is pleased to announce it has
received a Letter of Interest ("LOI") from Export Development Canada ("EDC"), the Government of
Canada's
export credit agency, expressing its
interest in participating as a Mandated Lead Arranger for potential debt financing of up to
US$250 million
from EDC to support the development and
construction of Defense Metals' flagship
Wicheeda Rare Earth Element (REE) Project
, located in
British Columbia, Canada
.
The LOI was issued in response to Defense Metals' request for potential financing support and is based on information provided by the Company,
ongoing discussions with EDC, and publicly available data.
Guy de Selliers
, Executive Chairman of Defense Metals commented:
"We are very pleased to receive this Letter of Interest from EDC. This is a strong endorsement of the strategic importance of the Wicheeda REE
Project and shows the key role that EDC might consider playing in its financing. This project would indeed contribute to a number of Canadian
priorities including the clean energy transition and the security of supply of critical minerals."
Mark Tory
, President and CEO of Defense Metals, commented:
"The pre feasibility study we released on
April 7
2025 demonstrates the financial robustness of the Wicheeda project. EDC's prospective support
can serve as an anchor to mobilise a comprehensive debt package. We are also encouraged by the recent creation in Canada, Europe and
elsewhere of a number of very large government backed equity funds with mandates to finance in projects like Wicheeda. For such a strategically
important and financially robust project as Wicheeda we are confident that financing will be available. We are encouraged by EDC's letter of
interest."
EDC is a financially self-sustaining Crown corporation. Over the last 25 years it has developed a particularly strong track record in structured and
project finance, having participated in more than 540 transactions totaling over
US$40 billion
. The proposed financing from EDC remains subject to
the satisfactory completion of all due diligence.
About Defense Metals Corp. and its Wicheeda REE Deposit
Defense Metals Corp. is focused on the development of its 100% owned, 11,800-hectare (~29,158-acre) Wicheeda Rare Earth Element (REE)
property that is located on the traditional territory of the McLeod Lake Indian Band in
British Columbia, Canada
.
The Wicheeda 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
. The Company
recently completed a Preliminary Feasibility Study (PFS) that demonstrated the robust economics of the project.
For further information, please visit
www.defensemetals.com
or contact:
Mark Tory
President and CEO
Tel: +1 604-445-8179
Email:
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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 EDC Funding and participation in a potential debt financing to support the development
and construction of the Wicheeda Project. 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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CNW 07:30e 04-JUN-25