VANCOUVER, BC, Jan. 6, 2025
/CNW/ - Defense Metals Corp. ("Defense Metals"
or the "Company"; (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D)
today issued a letter to shareholders from its Executive Chairman,
Guy de Selliers, highlighting recent developments and the
progress of the pre-feasibility study for the Company's Wicheeda
Project. The full letter is embedded in this news release
below.
Dear Shareholders,
As we start 2025, my colleagues and I at Defense Metals look
forward to the year ahead with confidence and optimism. We take
pride in having dealt with the legacy challenges of the last year
and believe Defense Metals is now poised to make significant
progress in developing our world class Wicheeda rare earths
deposit.
As previously announced, our pre-feasibility study results are
expected to be released in early February. Hatch has been appointed
to manage the pre-feasibility process and to act as qualified
person for the overall study with the support of SRK and other
world-renowned experts. This gives assurance that this
pre-feasibility study will provide reliable numbers to assess the
economic potential of our project.
We have a strengthened management team led by our new CEO,
Mark Tory. He brings a wealth of
experience in the management of mining companies, including in the
rare earths industry. We have also a number of new full-time
employees in particular Alex Heath
as SVP strategy and interim CFO and Michelle Tanguay, responsible for environment,
regulatory and social performance.
Our Board is composed of experienced directors with strong track
records. I assumed the position of Executive Chairman last summer.
Suzanne Rich Folsom, who has served
as General Counsel of some of the largest companies in the U.S.,
joined last July. Luisa Moreno,
Dale Wallster and Ted Kavanagh continue as active members as well.
We also have a Resource Capital Funds observer on the board, which
illustrates the strong support we enjoy from our largest
institutional investor.
Having raised C$4 million in
October, we have the resources necessary to finalise our
pre-feasibility study. I personally invested more than C$1.7 million as part of that fundraise. Because
of the urgency of raising these funds and the difficult market
conditions, this was done through a secured convertible note. I
would like to stress that these notes automatically convert to
equity in the context of any future equity financing over
C$4 million in order to eliminate any
debt overhang that could be of concern to investors.
We maintain strong relationships with all key stakeholders,
including the McLeod Lake Indian Band whose traditional territories
host our deposit, as well as with Government authorities in
Canada, at both Federal and
provincial level, in the United
States, and in Europe.
Recent geopolitical developments and the increasing concerns about
the persistent and excessive over-reliance on China for rare earth supplies opens many
possibilities for technical cooperation and financial support from
industry and government entities. Additionally, systemic forms of
support from Governments through tariffs and other policy
initiatives could underpin and stabilise the market prices for our
products. We are in active discussion with prestigious
government-backed research institutions such as Saskatchewan
Research Council in Canada and Oak
Ridge National Laboratory in the U.S. We have also applied for
grant funding in both countries and are optimistic that some of
these will materialise soon.
We are in constructive discussions with a number of potential
partners and off-takers, many of whom have received samples of our
concentrate/carbonate produced during pilot plant testing. Rather
pleasingly, all sample recipients have reacted positively and
confirmed their potential interest.
Finally, the rare earths reference price has started to recover
from the last summer's lows and is projected to continue to do so
as forecasted by Argus in a recent report and by most analysts. Our
share price has also now rebounded quite substantially.
We have everything it takes to be successful in developing the
Wicheeda deposit which is one of the very best deposits in
North America. It has good grade,
spectacular mineralogy allowing us to produce a very high-grade
mineral concentrate, great location with access to infrastructure
and to skilled labour force, and supportive government and great
relations with our First Nation partner.
Dear Shareholders, I am well aware that you might have been
disappointed by Defense Metals performance in the past, but I
believe that the stars are now aligned for a dramatically improved
performance in the future. I have more than 40 years of experience
in developing mining projects around the world and I know that it
is always challenging, that it takes longer than expected and, that
it is full of surprises. But in this case, I am extremely bullish
and I hope that you, as shareholders, will see why and will
continue to travel with us on this exciting journey.
I wish you a prosperous and happy New Year.
Guy de Selliers
Executive Chairman – Defense Metals Corp.
About Defense Metals Corp. and its Wicheeda Rare Earth
Element Project
Defense Metals Corp. is focused on the development of its 100%
owned, 11,800-hectare (~29,158-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.
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SOURCE Defense Metals Corp.