Defense Metals Announces Closing of Fully Subscribed Convertible Bridge Financing; Raises Gross Proceeds of $4 Million & Provides Update on Prefeasibility Study and CEO Search
Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) has successfully closed a $4 million non-brokered bridge financing of secured convertible notes. The proceeds will fund the completion of the Prefeasibility Study (PFS) for the Wicheeda Rare Earth Element Project, expected to be substantially completed by year-end with final results in Q1 2025. The company plans to launch a Definitive Feasibility Study (DFS) immediately after, with financing expected in Q1 2025.
Defense Metals is also actively searching for a new CEO, with the appointment expected by Q1 2025. The convertible notes bear a 10% annual interest rate, payable quarterly in common shares, and mature in 12 months. Investors can convert the principal into shares at $0.125 per share, with automatic conversion upon certain events. The notes are secured against the company's assets, including the Wicheeda REE Project mining claims.
Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) ha chiuso con successo un finanziamento ponte non mediato di 4 milioni di dollari attraverso note convertibili garantite. I proventi serviranno a finanziare il completamento del Studio di Prefattibilità (PFS) per il Progetto di Elementi Terreni Rari Wicheeda, che è previsto sia sostanzialmente completato entro la fine dell'anno, con risultati finali nel primo trimestre del 2025. L'azienda prevede di avviare immediatamente uno Studio di Fattibilità Definitivo (DFS) dopo, con finanziamenti attesi nel primo trimestre del 2025.
Defense Metals sta anche cercando attivamente un nuovo CEO, con l'appuntamento previsto entro il primo trimestre del 2025. Le note convertibili hanno un tasso d'interesse annuo del 10%, pagabile trimestralmente in azioni ordinarie, e scadono dopo 12 mesi. Gli investitori possono convertire il capitale in azioni a 0,125 dollari per azione, con conversione automatica in caso di determinati eventi. Le note sono garantite dagli attivi dell'azienda, inclusi i diritti minerari del Progetto Wicheeda REE.
Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) ha cerrado con éxito un financiamiento puente no intercedido de 4 millones de dólares a través de notas convertibles garantizadas. Los ingresos se destinarán a completar el Estudio de Prefactibilidad (PFS) para el Proyecto de Elementos de Tierras Raras Wicheeda, que se espera esté sustancialmente completado para finales de año, con resultados finales en el primer trimestre de 2025. La compañía planea lanzar inmediatamente un Estudio de Factibilidad Definitiva (DFS) después, con financiamiento esperado en el primer trimestre de 2025.
Defense Metals también está buscando activamente un nuevo CEO, con la designación prevista para el primer trimestre de 2025. Las notas convertibles tienen un tasa de interés anual del 10%, pagaderas trimestralmente en acciones comunes, y vencen en 12 meses. Los inversionistas pueden convertir el capital en acciones a 0,125 dólares por acción, con conversión automática ante ciertos eventos. Las notas están garantizadas por los activos de la empresa, incluidos los derechos mineros del Proyecto Wicheeda REE.
Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF)는 4백만 달러 비미화 교량 금융과 관련된 담보 전환 사채를 성공적으로 마감했습니다. 수익금은 Wicheeda 희토류 프로젝트의 타당성 조사(PFS) 완료에 사용될 예정이며, 연말까지 대부분 완료될 것으로 예상되며, 최종 결과는 2025년 1분기에 발표될 예정입니다. 회사는 그 직후에 Definitive Feasibility Study (DFS)를 시작할 계획이며, 2025년 1분기에 자금을 조달할 것으로 예상됩니다.
Defense Metals는 새로운 CEO를 적극적으로 찾고 있으며, 임명은 2025년 1분기 내에 이루어질 것으로 예상됩니다. 전환 사채는 연 10%의 이자율을 보이며, 일반 주식으로 분기마다 지급되며, 12개월 후 만기가 됩니다. 투자자는 원금을 주당 0.125달러에 주식으로 전환할 수 있으며, 특정 이벤트 발생 시 자동으로 전환됩니다. 이 사채는 Wicheeda REE 프로젝트의 광산 청구권을 포함한 회사 자산에 담보됩니다.
Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) a réussi à clôturer un financement relais de 4 millions de dollars sans courtage sous forme de billets convertibles sécurisés. Les fonds permettront de financer l'achèvement de l'étude de préfaisabilité (PFS) pour le projet d'éléments de terres rares de Wicheeda, qui devrait être largement terminée d'ici la fin de l'année, avec les résultats finaux prévus pour le premier trimestre 2025. La société prévoit de lancer immédiatement une étude de faisabilité définitive (DFS) par la suite, avec un financement attendu au premier trimestre 2025.
Defense Metals est également à la recherche active d'un nouveau PDG, avec un rendez-vous prévu pour le premier trimestre 2025. Les billets convertibles portent un taux d'intérêt annuel de 10%, payable trimestriellement en actions ordinaires et arrivent à échéance dans 12 mois. Les investisseurs peuvent convertir le principal en actions à 0,125 $ par action, avec conversion automatique en cas de certains événements. Les notes sont garantis par les actifs de l'entreprise, y compris les droits miniers du projet Wicheeda REE.
Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) hat erfolgreich eine nicht vermittelte Brückenfinanzierung in Höhe von 4 Millionen Dollar durch gesicherte wandelbare Anleihen abgeschlossen. Die Erlöse werden zur Finanzierung des Machbarkeitsstudie (PFS) für das Wicheeda-Projekt mit seltenen Erden verwendet, das voraussichtlich bis zum Jahresende weitgehend abgeschlossen sein wird, mit den endgültigen Ergebnissen im ersten Quartal 2025. Das Unternehmen plant, sofort danach eine Definitive Machbarkeitsstudie (DFS) zu starten, mit der Finanzierung, die im ersten Quartal 2025 erwartet wird.
Defense Metals sucht auch aktiv einen neuen CEO, mit der Ernennung, die bis zum ersten Quartal 2025 erwartet wird. Die wandelbaren Anleihen haben einen Jahreszinssatz von 10%, der vierteljährlich in Stammaktien zahlbar ist, und laufen in 12 Monaten ab. Investoren können das Kapital zu einem Preis von 0,125 Dollar pro Aktie in Aktien umwandeln, mit automatischer Umwandlung bei bestimmten Ereignissen. Die Anleihen sind durch die Vermögenswerte des Unternehmens gesichert, einschließlich der Bergbaurechte des Wicheeda REE-Projekts.
- Successful closing of $4 million bridge financing
- Prefeasibility Study for Wicheeda Rare Earth Element Project nearing completion
- Plans to launch Definitive Feasibility Study in Q1 2025
- Active CEO search with appointment expected by Q1 2025
- Secured financing terms with 10% interest rate and conversion options
- Potential shareholder dilution due to interest payments in common shares and conversion options
- Short-term debt maturity of 12 months for the convertible notes
Update on Prefeasibility Study
The proceeds of the Offering will enable Defense Metals to complete the Prefeasibility Study ("PFS") for the Wicheeda Rare Earth Element Project, carry out scenario analyses, evaluate possible optimization of processes, and conduct further testing. The PFS will be substantially completed by the end of the year, with the final results published in Q1 2025. The PFS is being led by Hatch Ltd., with metallurgical oversight provided by rare earth processing expert John Goode.
Following the completion of the PFS, Defense Metals plans to immediately launch into the Definitive Feasibility Study ("DFS"), with financing expected to take place in Q1 2025.
CEO Search Update
The Company is also actively conducting a search for a new CEO, which is being led by executive search firm Johnson Partners. A number of highly qualified candidates have already been identified, and the new CEO is expected to be in place by Q1 2025.
Guy de Selliers, Executive Chairman and Acting CEO of Defense Metals, commented:
"We are encouraged by the progress we are making at this pivotal stage for Defense Metals. The successful completion of a fully subscribed financing is a testament to the quality of the Wicheeda Project, which is by all accounts one of the very best undeveloped rare earth mining projects in
Alex Heath, SVP Corporate Development & Interim CFO of Defense Metals, added:
"This financing provides the necessary financial resources we need to complete the pre-feasibility study and further advance our technical and optimization work. It also positions us to raise the financing required for the Definitive Feasibility Study as a further step towards bringing the Wicheeda deposit into production. We are confident that we will be able to raise the necessary financing for the project with the help of our financial advisor HCF International Advisors, which was instrumental in mobilizing AUD
Terms of The Notes
The Notes bear interest from the date of issuance at a rate of ten percent (
The Notes will automatically convert into Common Shares upon the occurrence of certain events (each, a "Mandatory Conversion Event"), including the completion by the Company of a new issuance of equity as part of a minimum
The Notes were issued on a private placement basis to eligible accredited investors, with lead orders from Okeburn Corp Limited ("Okeburn"), a company owned by a family trust of Guy de Selliers, Defense Metals' Executive Chairman and RCF Opportunities Fund II L.P. ("RCF"). Okeburn participated for
The Notes are secured against all personal property of the Company and a first ranking security interest against the Company's mining claims in respect of the Wicheeda REE Project. All note holders rank pari passu among themselves.
The Company intends to use the proceeds of the Offering for completion of the pre-feasibility study for the Wicheeda REE Project and general corporate and working capital purposes. The Notes and any underlying Common Shares are subject to a four-month hold period from the date of issuance of the Notes as set out in National Instrument 45-102 – Resale of Securities.
About Defense Metals Corp. and its Wicheeda Rare Earth Element Project
Defense Metals Corp. is focused on the development of its
The Wicheeda REE Project, approximately 80 kilometres (~50 miles) northeast of the city of
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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