Defense Metals Secures Funding from Natural Resource Canada's Critical Minerals Infrastructure Fund for its Wicheeda Rare Earth Element Project

Rhea-AI Summary

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.

Positive

• Secured C$853,825 government funding for infrastructure development
• Only rare earth project in Canada with proven and probable reserves
• Pre-Feasibility Study confirms strong economic viability
• Strategic partnership with Indigenous group as equity partner

Negative

• Project still requires significant infrastructure development
• Dependent on successful completion of transmission line studies

VANCOUVER, BC, March 3, 2025 /PRNewswire/ - Defense Metals Corp. ("Defense Metals" or the "Company"; (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce that it has been named as a recipient for funding of up to C$853,825 from Natural Resources Canada's (NRCan) Critical Minerals Infrastructure Fund (CMIF) to support the advancement of infrastructure for its Wicheeda Rare Earth Element (REE) deposit, located northeast of Prince George, British Columbia.

Highlights:

• Conditional funding approval for up to C$853,825 from Natural Resource Canada's Critical Minerals Infrastructure Fund.
• Funding will support an economic study assessing the construction of a 46km transmission line connecting Wicheeda to the provincial hydroelectric power grid.
• The study includes powerline engineering, environmental studies archaeological assessments, and Indigenous engagement.
• The McLeod Lake Indian Band (MLIB) is an equity partner in the project and is actively involved in decision-making through a co-design agreement with Defense Metals.
• The CMIF funding builds on the recently completed Pre-Feasibility Study (PFS), which confirmed the Wicheeda Project's strong economic viability and potential to become a significant North American supplier of critical rare earth elements.

The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources Canada, commented: "Developing Canada's abundant critical minerals drives economic opportunity and creates hundreds of high-paying jobs. Programs like this help mines get built faster, and they are a key element in seizing the generational opportunity before us. The funding provided to Defense Metals for its Wicheeda Rare Earth Element Project, will help advance the development of the necessary infrastructure to expand British Columbia's sustainable critical minerals production. Defense Metals, and many other businesses in British Columbia know that moving forward, economic development and environmental sustainability must go hand in hand."

"We are very grateful for this important endorsement from Natural Resources Canada and its Critical Minerals Infrastructure Fund," said Mark Tory, CEO of Defense Metals. "This funding is the first step to advancing crucial infrastructure for the Wicheeda Project, the only rare earth project in Canada with current proven and probable reserves. As North America's most advanced rare earth developer, we are bridging the critical minerals supply gap by positioning Wicheeda as a key future supplier of these essential rare earth materials."

Transmission Line Study Summary

The CMIF funding will enable Defense Metals to undertake studies for a proposed 46km transmission line, which will connect the Wicheeda Project to British Columbia's provincial hydroelectric power grid. This initiative represents a critical step toward ensuring a reliable, sustainable power supply for the project while reducing reliance on alternative energy sources. The scope of work under this funding includes powerline engineering, environmental studies, archaeological assessments, and ongoing Indigenous engagement with MLIB.

As announced on January 17, 2024, Defense Metals and MLIB have an established co-design agreement, ensuring that Indigenous perspectives are integrated into the project assessment and development. MLIB's equity partnership in the project further reinforces their involvement in decision-making processes.

The Wicheeda Project is a strategically significant asset for Canada's critical minerals sector, aiming to contribute to the domestic supply of rare earths essential for clean energy, defense, and advanced technology applications.

About the Critical Minerals Infrastructure Fund (CMIF)

The Critical Minerals Infrastructure Fund (CMIF) is a program established by Natural Resources Canada to support infrastructure projects that enhance the development and supply of critical minerals in Canada. The fund aims to improve access to power, transportation, and other key infrastructure to advance the country's position as a global leader in critical minerals production.

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 rare earth element ("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 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. 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

How much funding did Defense Metals (DFMTF) receive from Natural Resources Canada?

Defense Metals received conditional funding approval for up to C$853,825 from Natural Resources Canada's Critical Minerals Infrastructure Fund.

What will the CMIF funding be used for in the DFMTF Wicheeda project?

The funding will support studies for a 46km transmission line project, including powerline engineering, environmental studies, archaeological assessments, and Indigenous engagement.

What is the significance of the Wicheeda project for DFMTF shareholders?

Wicheeda is the only rare earth project in Canada with proven and probable reserves, positioning DFMTF as North America's most advanced rare earth developer.

What is the partnership structure between DFMTF and the McLeod Lake Indian Band?

The McLeod Lake Indian Band is an equity partner in the project and is actively involved in decision-making through a co-design agreement with Defense Metals.