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Defense Metals Corp
Symbol DEFN
Shares Issued 50,683,133
Close 2020-10-29 C$ 0.175
Recent Sedar Documents

Defense Metals closes $505,000 financing

2020-10-30 08:50 ET - News Release

Mr. Craig Taylor reports

DEFENSE METALS CORP. CLOSES PRIVATE PLACEMENT FINANCING

Further to its news release on Oct. 27, 2020, Defense Metals Corp. has closed a non-brokered private placement of 2,525,000 units for gross proceeds of $505,000. As previously disclosed, each unit was priced at 20 cents and comprises one common share and one common share purchase warrant. Each warrant is exercisable to purchase one common share of the company at a price of 25 cents per share for a period of 12 months from the date of closing the private placement.

The company also announces that it has closed a non-brokered private placement of 405,000 flow-through common shares at a price of 25 cents per FT share for gross proceeds of $101,250.

Craig Taylor, chief executive officer, comments: "With our highly successful flotation pilot plant now complete yielding 1,200 kilograms of high-grade REE mineral concentrate, this current round of funding will allow us to work towards completion of a preliminary economic assessment (PEA) for the Wicheeda REE project which we hope to complete by the end of Q1 2021. We would like to thank all our supporters who continue to help Defense Metals derisk and further develop the Wicheeda REE project."

The company paid cash finders' fees of $7,087.50 and issued 28,350 non-transferable finder warrants to certain brokers on a portion of the private placements. The finder warrants otherwise have the same terms as the warrants.

Three directors of the company participated in the private placement. Participation by insiders of the company in the private placements constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. Because the company's shares trade on the TSX Venture Exchange, the issuance of securities are exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(a) and (b) of MI 61-101.

All securities issued in connection with the private placements are subject to a four-month hold period from the closing date in accordance with applicable securities laws.

The proceeds from these private placements will be used on the company's Wicheeda rare earth element project located in Prince George, B.C., and for general working capital purposes.

Wicheeda REE project

The Wicheeda REE project has indicated mineral resources of 4.89 million tonnes averaging 3.02 per cent LREO (light rare earth elements) and inferred mineral resources of 12.1 million tonnes averaging 2.90 per cent LREO (1).

Qualified person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE property has been reviewed and approved by Kristopher J. Raffle, PGeo (B.C.), principal and consultant of APEX Geoscience Ltd. of Edmonton, Alta., a director of Defense Metals and a qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About Defense Metals Corp.

Defense Metals 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. Defense Metals has an option to acquire 100 per cent of the 1,708-hectare Wicheeda rare earth element property located near Prince George, B.C., Canada.

(1) Technical report on the Wicheeda property, British Columbia, effective June 27, 2020, and prepared by APEX Geoscience Ltd. (Steven J. Nicholls, BA, Sc, MAIG, and Kristopher J. Raffle, BSc, PGeo) is available under Defense Metals' profile on SEDAR.

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