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VANCOUVER, BC, Dec. 8, 2022
/CNW/ - Defense Metals Corp. ("Defense Metals" or the
"Company") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased
to announce it has closed a previously announced, oversubscribed
non-brokered private placement financing (the "Private
Placement") for aggregate gross proceeds of $6,094,020.66, consisting of 12,364,172
flow-through common shares of the Company (each, a "FT
Share") at a price of $0.28 per
FT Share and 11,963,875 units of the Company (each, a
"Unit") at a price of $0.22
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-half of 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 $0.32 for a period of 24
months from closing.
The proceeds raised from the sale of the FT Shares will be used
for advancing the Company's Wicheeda Rare Earth Element
("REE") Project that qualify as "Canadian Exploration
Expenditures" (within the meaning of the Act) and the net proceeds
raised from the sale of Units will be used for the Wicheeda Project
as well as for general corporate and working capital purposes.
In connection with the Private Placement, the Company paid
aggregate cash finder's fees of $258,047.55 and issued 1,017,476 non-transferable
finder warrants to certain brokers, 366,882 of which are
exercisable at a price of $0.22 per
share and the remaining amount at a price of $0.32 per common share for a period of 24 months
from closing.
All securities issued under the Private Placement are subject to
a four month hold period in accordance with applicable securities
laws.
Stock Options
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 5,400,000 common shares of the Company at a
price of $0.22 per common share
for a period of three (3) years. 250,000 Options granted
to Bluesky Corporate Communications Ltd. will vest
in stages over a period of 12 months in equal portions every three
months starting three months after the date of grant. The remaining
Options vest on the date of grant.
About the Wicheeda REE
Project
The 100% owned 4,244-hectare Wicheeda REE Project, 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% IRR[1]. 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 markets, 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 Deposit
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".
For further information, please contact:
Todd Hanas, Bluesky Corporate
Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email: todd@blueskycorp.ca
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 contains "forward‐looking information or
statements" within the meaning of applicable securities laws, which
may include, without limitation, statements that address the
Private Placement, the intended use of proceeds of the Private
Placement, advancing the Wicheeda REE Project, the Company's plans
for its Wicheeda REE Project, and other statements relating to 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 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 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, 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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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).
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SOURCE Defense Metals Corp.