Defense Metals Stock Price, News & Analysis

Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) has secured funding of up to C$853,825 from Natural Resources Canada's Critical Minerals Infrastructure Fund (CMIF) for its Wicheeda Rare Earth Element Project in British Columbia.

The funding will support an economic study for a 46km transmission line connecting Wicheeda to the provincial hydroelectric power grid, including powerline engineering, environmental studies, archaeological assessments, and Indigenous engagement. The McLeod Lake Indian Band (MLIB) is an equity partner in the project through a co-design agreement.

The funding builds on a recently completed Pre-Feasibility Study that confirmed Wicheeda's economic viability and potential as a significant North American rare earth elements supplier. The project is currently the only rare earth project in Canada with proven and probable reserves.

Defense Metals has released the results of its Pre-Feasibility Study (PFS) for the Wicheeda Rare Earth Element deposit in British Columbia, Canada. The project demonstrates robust economics with a pre-tax NPV of US$1.8 billion at 8% discount rate and IRR of 24.6%, with after-tax payback of 3.7 years.

The project features a 15-year mine life with a 5,000 tonne per day flotation concentrator, requiring an initial capital cost of US$1.4 billion. The operation will produce an average of 31,900 tonnes of Total Rare Earth Oxide annually in concentrate, yielding approximately 5,200 tonnes of TREO in high-value mixed rare earth carbonate after removing cerium and lanthanum.

Key advantages include the production of high-grade flotation mineral concentrate containing 50% TREO at 81% recovery over the initial 8 years, with cash operating costs averaging $37.42/kg NdPrO. The project's final product will focus on critical elements for permanent magnet applications: neodymium and praseodymium (87.3%), dysprosium (0.6%), and terbium (0.2%).

Defense Metals (OTCQB: DFMTF) has announced a significant improvement to its hydrometallurgical plant flowsheet by adding a solvent extraction (SX) circuit to remove low-value Cerium and Lanthanum. This modification will increase the Neodymium and Praseodymium (NdPr) oxide content in the mixed rare earth carbonate (MREC) from 14% to at least 85% on a total rare earth oxide basis.

According to Argus Media, this enhancement will result in one of the highest basket values among existing or planned light rare earth production outside China. The improved MREC will reduce product handling equipment capacity requirements and transportation mass. While the modification will increase capital costs, the company believes the benefits will significantly outweigh the expenses.

The pre-feasibility study, expected in Q1, will incorporate the SX circuit in the overall project design.

Defense Metals Corp (TSXV: DEFN) (OTCQB: DFMTF) has announced it will issue 491,807 shares of common stock as Interest Shares to holders of secured convertible notes. This issuance satisfies an interest payment of C$100,821.92 due January 11, 2025. The Interest Shares will be priced at C$0.205 per share, determined by the greater of the 20-day volume-weighted average trading price on TSXV or the minimum price allowed by TSXV policies.

The convertible notes are set to mature on October 11, 2025. The Interest Shares issuance requires TSXV approval and will be subject to a four-month and one-day hold period under Canadian securities laws.

Defense Metals Corp (TSXV: DEFN) (OTCQB: DFMTF) has announced several key executive appointments and board changes. Mark Tory has officially started his role as President and Chief Executive Officer, taking over the President position from Dr. Luisa Moreno, who will remain on the Board of Directors. Mr. Tory has also been appointed to the Board of Directors.

The company announced that Martin Cronin did not seek re-election at the recent Annual General Meeting but will continue serving as an advisor. Additionally, Alex Heath has been appointed as Corporate Secretary while maintaining his current role as SVP Corporate Development & Interim CFO.

The Board of Directors now consists of six members: Suzanne Folsom, Luisa Moreno, Guy de Selliers, Dale Wallster, Ted Kavanagh, and Mark Tory.

Defense Metals Corp (TSXV: DEFN) (OTCQB: DFMTF) released a shareholder letter from Executive Chairman Guy de Selliers highlighting recent developments and upcoming milestones. The company expects to release pre-feasibility study results in early February, managed by Hatch with support from SRK and other experts.

The company recently strengthened its management team with new CEO Mark Tory, raised C$4 million in October through a secured convertible note (including C$1.7 million from the Chairman), and maintains strong relationships with stakeholders including the McLeod Lake Indian Band. The company is in discussions with potential partners and off-takers, who have received samples of their concentrate/carbonate from pilot plant testing with positive feedback.

The Wicheeda rare earths deposit is highlighted as one of North America's premier deposits, featuring good grade, favorable mineralogy for high-grade concentrate production, excellent infrastructure access, skilled labor availability, and strong government and First Nation support.

Defense Metals (TSXV: DEFN) (OTCQB: DFMTF) has announced the grant of 9,950,000 incentive stock options to directors, officers and consultants. The options are structured as follows: 8,850,000 options at C$0.125 per share, 400,000 options at C$0.205 per share, and 700,000 options at C$0.26 per share. All options have a five-year exercise period and are subject to TSX Venture Exchange approval and certain vesting provisions.

The company's Executive Chairman, Guy de Selliers, emphasized that these options are important for attracting and retaining talent needed for the Wicheeda Project, with a Prefeasibility Study expected in Q1 2025.

Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) held its annual general meeting on December 18, 2024, where shareholders made several key decisions. The board of directors was set at five members, with all nominees successfully elected. P.E. Ted Kavanagh and Suzanne Rich Folsom received the highest approval rates at 99.98% each, while Guy de Selliers de Moranville secured 98.76% of votes. Dr. Luisa Moreno and Dale Wallster each received 92.82% approval. Shareholders also approved the appointment of Crowe MacKay LLP as auditor, authorized directors to fix auditor remuneration, and approved a new 10% rolling omnibus incentive plan.

Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) announces its Annual General Meeting scheduled for December 18, 2024, in Vancouver. Due to the ongoing Canada Post strike, the company advises shareholders that Proxy Materials can be accessed on SEDAR+ and the company's website. The meeting agenda includes reviewing annual financial statements, electing five directors, appointing Crowe MacKay LLP as auditor, and approving a new 10% rolling omnibus plan.

Registered shareholders can contact the company directly for proxy assistance, with a voting deadline of December 16, 2024, at 11:00 a.m. PST. Beneficial shareholders should contact their brokers or the company for voting materials. Financial statements and MD&A are available on SEDAR+.