VANCOUVER, BC, Jan. 14, 2022 /CNW/ - Defense Metals Corp.
("Defense Metals" or the "Company") (TSXV: DEFN)
(OTCQB: DFMTF) (FSE: 35D) is pleased to announce that it has
completed the acquisition of Spectrum Mining Corporation
("Spectrum"), the holder of a one hundred percent (100%)
interest in the Wicheeda Rare Earth Element (REE) Property.
Pursuant to the option agreement between the Company and
Spectrum dated November 22, 2018 (the
"Option Agreement"), Defense Metals fulfilled all required
cash payments, share issuances and exploration expenditure
requirements necessary to exercise the option to acquire all of the
issued and outstanding common shares of Spectrum. Upon delivery of
the notice to Spectrum of exercise of the option, Defense Metals
completed the final acquisition payments under the Option Agreement
as follows:
- issued to the shareholders of Spectrum (the "Vendors")
on a pro rata basis, such number of common shares of the Company
equal to 49% of the issued and outstanding common shares on a
post-issuance basis, and
- paid to the Vendors on a pro rata basis, a cash payment in the
aggregate of $100,000.
The final payments under the Option Agreement to acquire
Spectrum totalled 78,115,549 common shares of Defense Metals at a
deemed price of $0.225 per share and
the payment of $100,000 in cash, for
final payment consideration of $17,675,999.
Pursuant to a finder's fee agreement with Mulgravian Ventures
Corporation ("MVC") entered into in connection with the
Option Agreement, the Company issued 1,171,733 common shares of the
Company to MVC, equal to 1.5% of the number of common shares issued
to the Vendors upon the closing of the acquisition of Spectrum. The
common shares issued to MVC are subject to a four month hold period
in accordance with Canadian securities laws and the policies of the
TSX Venture Exchange.
Craig Taylor, CEO of Defense
Metals commented:
"Since entering the option to
acquire the exploration stage Wicheeda REE Project in late 2018
Defense Metals has advanced the project through metallurgical
flowsheet development, and initial and updated mineral resource
estimates. This work has culminated in our recent positive PEA for
Wicheeda yielding a pre-tax net present value (NPV@8%) of
CAD$760 million1. Defense
Metals now owns and controls 100% of the Wicheeda REE Project. With
this acquisition, and our PEA, we look forward to continuing to
advance this exceptional North American REE
asset."
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1
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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).
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About Spectrum Mining Corporation / Wicheeda Project
Spectrum, a private British
Columbia incorporated company, is the legal, beneficial, and
registered holder of a one hundred percent (100%) interest in and
to six (6) mining claims located in the Cariboo Mining Division,
British Columbia known as the
Wicheeda Rare Earth Element (REE) Property.
The Wicheeda Property is subject to a 2.0% net smelter returns
royalty ("NSR Royalty") payable upon the commencement of any
commercial production. Defense Metals shall have the irrevocable
right to purchase one-half (1/2) of the NSR Royalty from the
Vendors, on a basis pro rata to their prior shareholdings in
Spectrum (being 1.0% of Net Smelter Returns) for $1,000,000, leaving the Vendors with an aggregate
1.0% NSR Royalty.
About the Wicheeda REE Property
The 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.
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.
Qualified Persons
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. Mr. Raffle
verified the data disclosed which includes a review of the
analytical and test data underlying the information and opinions
contained therein.
About Defense Metals Corp.
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, 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.
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, advancing
the Wicheeda Property, the Company's plans for its Wicheeda
Property, and expected results and outcomes, 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 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
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 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 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 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 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.
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SOURCE Defense Metals Corp.