Defense Metals Corp. (TSXV: DEFN) has closed a previously announced, oversubscribed non-brokered private placement financing for aggregate gross proceeds of C$6,094,020.66.
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.
Stock Options
The company also announces the granting of incentive stock 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 C$0.22 per common share for a period of three 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 C$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 1.8Mtpa (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 C$440 million initial capital within five years.
For further information please visit: https://www.defensemetals.com/
