Rare Earth Breaking News -
Defense Metals (TSX-V: $DEFN.V) (OTCQB: $DFMTF) Announces Closing of Fully
Subscribed Convertible Bridge Financing; Raises Gross Proceeds of $4 Million
& Provides Update on Prefeasibility Study and CEO Search; @defensemetals
VANCOUVER,
BC - October 11, 2024 (Investorideas.com Newswire) Defense Metals Corp.
("Defense Metals" or the "Company") (TSX-V:DEFN / OTCQB:DFMTF/ FSE: 35D) today announced the successful closing of its
previously announced non-brokered bridge financing of secured convertible notes
(the "Notes"), raising $4,000,000 in gross proceeds (the
"Offering").
Update on Prefeasibility Study
The proceeds of the Offering will
enable Defense Metals to complete the Prefeasibility Study ("PFS")
for the Wicheeda Rare Earth Element Project, carry out scenario analyses,
evaluate possible optimization of processes, and conduct further testing. The
PFS will be substantially completed by the end of the year, with the final
results published in Q1 2025. The PFS is being led by Hatch Ltd., with
metallurgical oversight provided by rare earth processing expert John Goode.
Following the completion of the PFS,
Defense Metals plans to immediately launch into the Definitive Feasibility
Study ("DFS"), with financing expected to take place in Q1 2025.
CEO Search Update
The Company is also actively
conducting a search for a new CEO, which is being led by executive search firm
Johnson Partners. A number of highly qualified candidates have already been
identified, and the new CEO is expected to be in place by Q1 2025.
This news is paid advertisement/ news disseminated
on behalf of/issued on behalf of Defense Metals Corp.
Read this news, featuring DEFN in
full at https://www.investorideas.com/news/2024/10111DEFN-Closing-Fully-Subscribed-Convertible-Bridge-Financing.asp
Guy de Selliers, Executive Chairman
and Acting CEO of Defense Metals, commented:
"We are encouraged by the
progress we are making at this pivotal stage for Defense Metals. The successful
completion of a fully subscribed financing is a testament to the quality of the
Wicheeda Project, which is by all accounts one of the very best undeveloped rare
earth mining projects in North America. Our fruitful collaboration with Hatch,
who played a lead engineer role on Arafura's Nolan's project, is helping us
advance swiftly toward completing our PFS. We are also pleased with the
positive response to our CEO search and look forward to having a new CEO in
place by Q1 2025, as we continue to accelerate forward."
Alex Heath, SVP Corporate Development
& Interim CFO of Defense Metals, added:
"This financing provides the
necessary financial resources we need to complete the pre-feasibility study and
further advance our technical and optimization work. It also positions us to
raise the financing required for the Definitive Feasibility Study as a further
step towards bringing the Wicheeda deposit into production. We are confident
that we will be able to raise the necessary financing for the project with the
help of our financial advisor HCF International Advisors, which was
instrumental in mobilizing AUD$1 billion debt package for Arafura's rare earth
project in Australia."
Terms of The Notes
The Notes bear interest from the date
of issuance at a rate of ten percent (10%) per annum, payable quarterly in
common shares of the Company ("Common Shares") at a price per share
equal to the applicable 20-day volume-weighted average price of the Common
Shares on the TSX Venture Exchange (the "TSXV"), or such other price
determined in accordance with the policies of the TSXV. The Notes will mature
12 months after the date of issuance. Investors have the option to convert the
principal amount of the Notes into Common Shares at a deemed price of $0.125
per share up to seven days prior to a Mandatory Conversion Event (as defined
below).
The Notes will automatically convert
into Common Shares upon the occurrence of certain events (each, a
"Mandatory Conversion Event"), including the completion by the
Company of a new issuance of equity as part of a minimum $4,000,000 financing
from third party sources (excluding conversion of the Notes), completion of a
sale of all or substantially all of the Common Shares or assets of the Company,
or completion of a merger or other corporate transaction coincident with a
minimum $4,000,000 fundraise from third party capital (excluding conversion of
the Notes). Upon the occurrence of a Mandatory Conversion Event, the principal
amount of the Notes will automatically convert into Common Shares at a fifteen
percent (15%) discount to the applicable price of the offering implied by the
Mandatory Conversion Event, provided that if such conversion price would be
less than the Conversion Price there will be no mandatory conversion.
The Notes were issued on a private
placement basis to eligible accredited investors, with lead orders from Okeburn
Corp Limited ("Okeburn"), a company owned by a family trust of Guy de
Selliers, Defense Metals' Executive Chairman and RCF Opportunities Fund II L.P.
("RCF"). Okeburn participated for $1,768,000, and RCF subscribed for
Notes in the principal amount of $500,000. In connection with their
investments, both RCF and Okeburn entered into separate investor rights
agreements, granting them certain board observer rights, cashflow reporting
rights, and rights to participate in future financings of the Company. The
participation of Okeburn in the Offering is exempt from formal valuation and
minority shareholder approval requirements pursuant to exemptions contained in
sections 5.5(a) and 5.7(1)(a) of MI 61-101.
The Notes are secured against all
personal property of the Company and a first ranking security interest against
the Company's mining claims in respect of the Wicheeda REE Project. All note
holders rank pari passu among themselves.
The Company intends to use the
proceeds of the Offering for completion of the pre-feasibility study for the
Wicheeda REE Project and general corporate and working capital purposes. The
Notes and any underlying Common Shares are subject to a four-month hold period
from the date of issuance of the Notes as set out in National Instrument 45-102
- Resale of Securities.
About Defense Metals Corp. and its Wicheeda
Rare Earth Element Deposit
Defense Metals Corp. is focused on
the development of its 100% owned, 8,301-hectare (~20,534-acre) Wicheeda REE
Project that is located on the traditional territory of the McLeod Lake Indian
Band in British Columbia, Canada.
The Wicheeda REE Project,
approximately 80 kilometres (~50 miles) northeast of the city of Prince George,
is readily accessible by a paved highway and all-weather gravel roads and is
close to infrastructure, including hydro power transmission lines and gas
pipelines. The nearby Canadian National Railway and major highways allow easy
access to the port facilities at Prince Rupert, the closest major North
American port to Asia.
For further information, please
visit www.defensemetals.com or
contact:
Alex Heath
Senior Vice President, Corporate Development & Interim CFO
Tel: +1 604-354-2491
Email: alex@defensemetals.com
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, any
statements (expressed or implied) relating to: advancing the Wicheeda Project,
the use of net proceeds from the Private Placement, final TSXV approval of the
Private Placement, the technical, financial and business prospects of the
Company, its project and other matters. Forward-looking statements are
typically identified by words such as "plan," "believe,"
"expect," "anticipate," "intend,"
"outlook," "estimate," "forecast,"
"project," "continue," "could," "may,"
"might," "possible," "potential,"
"predict," "should," "would" and other similar
words and expressions, but the absence of these words does not mean that a
statement is not forward-looking. All statements in this news release, other
than statements of historical facts, that address events, contribution 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 and
metallurgical results, risks related to the inherent uncertainty of exploration
and development and cost estimates, the potential for unexpected costs and
expenses and those other risks filed under the Company's profile on SEDAR+ (www.sedarplus.ca).
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 or obtain
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, metallurgical,
engineering and pricing assumptions, decrease in the price of rare earth
elements, the impact of viruses and diseases on the Company's ability to
operate, restriction on labour and international travel and supply chains, loss
of key employees, consultants, officers or directors, increase in costs,
delayed 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.
SOURCE Defense Metals Corp.
Defense Metals Corp. (TSX-V:DEFN
/OTCQB:DFMTF) is a featured mining stock on Investorideas.com
More info on DEFN.V at Investorideas.com Visit: https://www.investorideas.com/CO/DEFN/
Get
News Alerts on Defense Metals Corp DEFN
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party
sourced news, articles and equity research as well as creates original content,
including video, interviews and articles. Original content created by
investorideas is protected by copyright laws other than syndication rights. Our
site does not make recommendations for purchases or sale of stocks, services or
products. Nothing on our sites should be construed as an offer or solicitation
to buy or sell products or securities. All investment involves risk and
possible loss of investment. This site is currently compensated for news
publication and distribution, social media and marketing, content creation and
more. Contact each company directly regarding content and press release
questions. Disclosure this
DEFN news is a paid featured
annual mining stock on investorideas.com
– learn more about costs and services https://www.investorideas.com/News-Upload/ More disclaimer
info: https://www.investorideas.com/About/Disclaimer.asp Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
About Investorideas.com
https://www.investorideas.com/About/
Sign up for free stock news alerts at Investorideas.com
https://www.investorideas.com/Resources/Newsletter.asp
Renewable Energy Stocks: investing ideas in
renewable energy stocks
Like Renewable Energy Stocks? View our
Renewable
Energy Stocks Directory
Get News
Alerts on Renewable Energy Stocks
Mining Sector Stocks- investing ideas in
mining stocks
Like Mining Stocks? View our Mining Stocks Directory
Get News Alerts on Mining
Stocks
