December 2, 2022
  • December 2, 2022

Defense Metals Corp. acquires 100% of the Wicheeda REE project

By on January 14, 2022 0

VANCOUVER, BC, January 14, 2022 /PRNewswire/ – Defense Metals Corp. (“defense metals“or the”Society“) (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce that it has completed the acquisition of Spectrum Mining Corporation (“Spectrum“), the one hundred percent (100%) interest holder in the Wicheeda Rare Earth Element (REE) property.

Under the terms of the option agreement between the Company and Spectrum dated November 22, 2018 (the “Option contract“), Defense Metals has completed all required cash payments, share issuances and exploration expenditures necessary to exercise the option to acquire all of the issued and outstanding common shares of Spectrum. Upon delivery of the Upon notice to Spectrum of the exercise of the option, Defense Metals has made the final acquisition payments under the option agreement as follows:

  • issued to shareholders of Spectrum (the “Sellers“) on a pro rata basis, a number of ordinary shares of the Company equal to 49% of the ordinary shares issued and outstanding after the issue, and
  • paid to Sellers on a pro rata basis, a cash payment in the aggregate of $100,000.

Final payments under the option agreement to acquire Spectrum totaled 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 in return for $17,675,999.

Pursuant to a finder’s fee agreement with Mulgravian Ventures Corporation (“VMC“) entered into pursuant to the option agreement, the Company issued 1,171,733 common shares of the Company to MVC, representing 1.5% of the number of common shares issued to the sellers 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 phase of the REE project from Wicheeda in late 2018, Defense Metals has advanced the project through development of the metallurgical scheme and initial and updated estimates. This work culminated in our recent positive PEA for Wicheeda, producing a net present value after tax ([email protected]%) of 760 million Canadian dollars1. 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 asset from ETR. »

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1

The 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. Issuer profile of on SEDAR (www.sedar.com).

About Spectrum Mining Corporation / Wicheeda Project

Spectrum, a private British Columbia incorporated company, is the legal, beneficial and registered owner of a one hundred percent (100%) interest in and to six (6) mineral 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 return royalty (“NSR royalty“) payable upon 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, pro rata to their prior equity interests in Spectrum (i.e. 1.0% of net returns foundry) for $1,000,000, leaving sellers with an aggregate royalty of 1.0% NSR.

About Wicheeda REE Property

The 2,008 hectare Wicheeda REE property, located approximately 80 km northeast of the town of Prince George, British Columbia, is easily accessible by all-weather gravel roads and is close to infrastructure including power lines, the CN railroad and major highways.

Geologically, the property is located within the Rocky Mountain Foreland Belt and Trench, a major continental geological feature. The foreland belt contains part of a large alkaline igneous province, extending from the Canadian Cordillera to the southwest United States, which includes several intrusive carbonatite and alkaline complexes hosting the Aley (niobium), Rock Canyon (REE) and Wicheeda (REE) deposits.

Qualified persons

The scientific and technical information contained in this press release with respect to the Wicheeda REE project has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and consultant to APEX Geoscience Ltd. of Edmonton, Alta., a director of Defense Metals and a “qualified person” within the meaning of NI 43-101. Mr. Raffle has verified the disclosed data, which includes a review of the analytical data and tests underlying the information and opinions contained therein.

On Defense Metals Corp.

Defense Metals Corp. is a mineral exploration company focused on acquiring 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-earth 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 press release.

Caution regarding “forward-looking” information

This press release contains “forward-looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, statements relating to the advancement of Wicheeda ownership, the company’s plans for its Wicheeda property and to the results and expected results, the technical, financial and commercial prospects of the Company, its project and other matters. All statements in this press release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results may differ materially from those contained in the forward-looking statements. These 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, expected costs and expenses, the ability to achieve its objectives, that general business and economic conditions will not change materially adversely, that financing will be available when needed and on reasonable terms. This forward-looking information reflects the Company’s beliefs with respect to future events and is subject to risks, uncertainties and assumptions, including risks and uncertainties related to the interpretation of exploration results, risks related to the inherent uncertainty of exploration and cost estimates, the potential for unforeseen costs and expenses and other risks filed under the Company’s profile on SEDAR at www.sedar.com. Although these estimates and assumptions are considered reasonable by the Company’s management, they are inherently subject to significant business, economic, competitive and regulatory risks and uncertainties. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the 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 (including First Nations) acceptance, risks related to unforeseen operational difficulties (including failure of equipment or processes to perform in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, action government or delays in receiving government approvals, industrial disruptions or other business measures, and unforeseen health, safety and environmental events), risks related to inaccurate geological and technical assumptions, the decline in the price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company’s operating capacity, an inability to anticipate and counter the effects of COVID-19 on the Company’s business, including, but not limited to, the effects of COVID-19 on the price of raw materials, capital market conditions, restrictions on labor and international travel and supply chains, loss of key employees, consultants or directors, increased costs, delayed drilling results, litigation and counterparty default contractual. The Company does not undertake to update any forward-looking statements or forward-looking information, except as required by law.

SOURCE Defense Metals Corp.