Defense Metals Signs MoU with Strategic Partner

Rhea-AI Summary

Defense Metals has announced a significant development in its rare earth elements project by signing a non-binding memorandum of understanding (MOU) with a major potential strategic partner on April 25, 2025. The agreement focuses on entering into a supply arrangement that would represent a substantial portion of the company's planned production output.

Key highlights:

• The MOU follows the company's recently published detailed pre-feasibility study for the Wicheeda project
• The development signals growing industry confidence in Wicheeda as a strategically important rare earth elements source
• Company President and CEO Mark Tory views this as a major step forward, while acknowledging more work lies ahead

Trading under symbols TSXV: DEFN, OTCQB: DFMTF, and FSE: 35D, Defense Metals is positioning itself as a potential key player in the rare earth elements market. This strategic partnership opportunity demonstrates market validation for the Wicheeda project's potential, though the company emphasizes that significant development work remains to bring the project to fruition.

Positive

• Signed MoU with major potential strategic partner for future supply agreement
• Agreement could secure significant portion of planned production output
• Recent pre-feasibility study shows promising results for Wicheeda rare earth elements project

Negative

• MoU is non-binding, indicating no firm commitment
• Project still requires significant work before becoming operational
• No specific details provided about the potential partner or agreement terms

VANCOUVER, BC, April 28, 2025 /PRNewswire/ - Defense Metals Corp. ("Defense Metals" or the "Company"; (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce the signing of a non-binding memorandum of understanding dated April 25, 2025 with a major potential strategic partner for entering into a supply agreement representing a significant portion of its planned output.

Mark Tory, President and CEO commented:

The interest shown by our potential strategic partner reflects growing industry confidence that Wicheeda could indeed become a strategically important source of rare earth elements based on the convincing results of our detailed pre-feasibility study published earlier this month. We still have a lot of work to do do to turn our project into reality, but this MOU is certainly a major step in the right direction."

About Defense Metals Corp. and its Wicheeda REE Deposit

Defense Metals Corp. is focused on the development of its 100% owned, 11,800-hectare (~29,158-acre) Wicheeda Rare Earth Element (REE) property that is located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada.

The Wicheeda 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. The Company recently completed a Preliminary Feasibility Study (PFS) that demonstrated the robust economics of the project.

For further information, please visit www.defensemetals.com or contact:

Mark Tory
President and CEO
Tel: +1 604-445-8179
Email: mark@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 process flowsheet 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. In addition, the MOU is non-binding and subject to the parties entering into a definitive offtake agreement.  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.

FAQ

What is the significance of Defense Metals (DFMTF) MoU signed on April 25, 2025?

Defense Metals signed a non-binding memorandum of understanding with a major strategic partner for a potential supply agreement that would represent a significant portion of its planned rare earth elements output from the Wicheeda project.

How does the Defense Metals (DFMTF) MoU impact their Wicheeda rare earth project?

The MoU demonstrates growing industry confidence in the Wicheeda project as a strategically important rare earth elements source, following positive results from their recent pre-feasibility study published in April 2025.

What are the next steps for Defense Metals (DFMTF) after signing the April 2025 MoU?

According to CEO Mark Tory, while the MoU is a major step forward, the company still has significant work ahead to turn the Wicheeda project into reality and finalize the supply agreement with their strategic partner.

What potential supply volume is covered in Defense Metals (DFMTF) April 2025 MoU?

The MoU indicates a supply agreement that would represent a significant portion of Defense Metals' planned output, though specific volumes are not disclosed in the press release.

How does Defense Metals' (DFMTF) pre-feasibility study relate to their new strategic partnership?

The convincing results of Defense Metals' detailed pre-feasibility study, published in early April 2025, helped attract the strategic partner's interest in establishing a significant supply agreement through the MoU.