VANCOUVER, BC, April 5,
2022 /CNW/ - Defense Metals Corp. ("Defense
Metals" or the "Company") (TSXV: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 $4,558,049.57, consisting
of 6,340,057 flow-through common shares of the Company (each, a
"FT Share") at a price of $0.35 per FT Share and 8,996,267 units of the
Company (each, a "Unit") at a price of $0.26 per Unit.
Each FT Share is a "flow-through share" within the meaning of
the Income Tax Act (Canada)
(the "Act"). Each Unit consists of one common share of the
Company and one common share purchase warrant (each whole warrant,
a "Warrant"). Each Warrant entitles the holder thereof to
purchase one common share of the Company at a price of $0.40 for a period of 24 months from the date of
issuance, provided that if after four months from the date of issue
and prior to the expiry of the Warrants, the closing price of the
common shares of the Company is equal to or greater than
$0.60 for a period of 15 consecutive
trading days, the Company will have the right to accelerate the
expiry of the Warrants by giving notice to the holders that the
Warrants will expire 15 days from the date of
notice.
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 and for general working capital
purposes.
In connection with the Private Placement, the Company paid
aggregate cash finder's fees of $162,152.92 and issued 487,087 non-transferable
finder warrants to Leede Jones Gable Inc., Qwest Investment Fund
Management Ltd., Accilent Capital Management Inc., iA Private
Wealth Inc., Haywood Securities Inc., Canaccord Genuity Corp.,
Research Capital Corporation and Glores Securities Inc. The finder
warrants are exercisable for a period of 24 months from issuance at
a price of $0.35 per share.
An insider-director of the Company subscribed for 60,000 Units,
which participation constituted a "related party transaction"
within the meaning of Multilateral Instrument 61-101
– Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). Such
participation is exempt from the formal valuation and minority
shareholder approval requirements under MI 61-101 pursuant to
subsections 5.5(b) and 5.7(1)(a) as the Company's common shares are
not listed on a specified market and the fair market value of the
securities acquired do not exceed 25% of the Company's market
capitalization.
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%
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.
__________
|
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).
|
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 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 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.
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,
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
assumptions, 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 under 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
maintain 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/defense-metals-closes-private-placement-financing-301517753.html
SOURCE Defense Metals Corp.