Defense Metals Corp. Announces Private
Defense Metals Corp. Announces Private
Placement and Grants Stock Options
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DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN
OR INTO
THE UNITED STATES
./
VANCOUVER
,
May 29, 2019
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
")
(TSX-V: DEFN/ DFMTF: OTCQB / 35D: FSE) is pleased to announce that it intends to complete a
non-brokered private placement of up to 3,333,334 units (each a "
Unit
") at a price of
$0.15
per Unit
for gross proceeds of up to
$500,000
. Each Unit will be comprised of one common share and one
common share purchase warrant (each a "
Warrant
"). Each Warrant is exercisable to purchase one
common share of the Company at a price of
$0.30
per share for a period of 12 months from the
date of closing of the private placement.
The Company also announces that it intends to complete a non-brokered private placement of up to
2,500,000 flow-through common shares ("
FT Shares
") at a price of
$0.20
per FT Share for gross
proceeds of up to
$500,000
.
The private placements are subject to TSX Venture Exchange approval and all securities are subject
to a four month hold period. Finder's fees will be payable in connection with the private placements,
all in accordance with the policies of the TSX Venture Exchange and applicable securities laws.
The proceeds from these private placements 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 also announces the granting of incentive stock options ("
Options
") to certain of its
directors, officers and consultants to purchase up to an aggregate 400,000 common shares of the
Company at a price of
$0.20
per common share for a period of five (5) years, subject to regulatory
and TSX Venture Exchange approval. 100,000 Options granted to Bluesky Corporate
Communications Ltd. will vest in stages over a period of 12 months in equal potions every three
months starting on the date of grant. The remaining Options vest on the date of grant.
About the Wicheeda Property
The Wicheeda 1,780 Hectare Property, is located approximately 80 km northeast of the city of
Prince George, British Columbia
, is readily accessible by all-weather gravel roads and is nearby to
infrastructure, including power transmission lines, the CN railway and major highways. Geologically,
the property is situated in the Foreland Belt and within the Rocky Mountain Trench, a major
continental geologic feature. The Foreland Belt contains part of a large alkaline igneous province,
stretching from the Canadian Cordillera to the southwestern
United States
, which includes several
carbonatite and alkaline intrusive complexes hosting the Aley (niobium), Rock Canyon (REE), and
Wicheeda (REE) deposits. The Wicheeda Property is underlain by Kechika Group metasedimentary
rocks that are intruded by the southeast-trending Wicheeda carbonatite; a deformed plug or sill
approximately 250 metres in diameter that hosts significant REE mineralization. This intrusion
comprises a ferroan dolomite carbonatite core, which passes gradationally outward into calcite
carbonatite.
About the Company
Defense Metals Corp. is a 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. The Company is (i) working on and has an option to acquire 100% of the
1,780 Hectare Wicheeda Rare Earth Element Project located in
Prince George, British Columbia
,
Canada, (ii) owns a 100% interest in prospective uranium claims in the N.E. section of the prolific
Athabasca
Basin,
Saskatchewan
and (iii) has an option to acquire 100% of the Lac Burge gold
property located northeast of
Val d'Or
, Quebec.
Defense Metals Corp.
trades in
Canada
under
"
DEFN" on the TSX Venture
Exchange,
the United States
, under
"DFMTF" on the OTCQB
and
Germany,
Frankfurt Exchange
under the symbol of
"35D".
Qualified Person
The scientific and technical information contained in this news release as it relates to the Wicheeda
Property has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and
Consultant of APEX Geoscience Ltd. of
Edmonton, AB
, a "Qualified Person" as defined in National
Instrument 43-101 –
Standards of Disclosure
for Mineral Projects
.
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" within the
meaning of applicable securities law, including without limitation, the Company's plans for its
properties/projects, the private placements and use of funds, other statements relating to the
technical, financial and business prospects of the Company, 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", "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
the Company 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 the
Company will operate in the future, including the price of metals, 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. 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.
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 gold, copper, uranium,
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 the Company 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 the Company 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 the Company's 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 the Company's 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 the
Company's 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 the Company's 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 the Company 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 18:39e 29-MAY-19