Defense Metals Corp. Achieves Another Milestone at Its Wicheeda Project

Background: Defense Metals is working to advance its 100%-owned Wicheeda project in British Columbia, Canada. The project contains a significant NI43-101 mineral resource estimate of rare earth elements.

According to the company, the project can potentially singlehandedly supply 10% of the world's light rare earth elements.

This makes Defense Metals' (TSXV:DEFN, OTC:DFMTF, FRA:35D) advanced-stage Wicheeda property a strategically important asset located in a mining-friendly jurisdiction with excellent infrastructure.

And just recently, the company has announced a groundbreaking partnership with a key stakeholder…

Latest Update: Defense Signs an Agreement with McLeod Lake Indian Band

On January 18, 2024 Defense Metals announced that it signed a strategic partnership with the McLeod Lake Indian Band (MLIB).

(The company's Wicheeda project is located on the Band's traditional territory.)

As part of the agreement, MLIB invested in Defense. It bought 2.6 million common shares of the company and became one of the shareholders.

This aligns the financial interests of MLIB with those of other Defense stakeholders.

Besides, MLIB has also signed a Co-Design Agreement with Defense. This will allow MLIB to participate in technical, social, engineering, and environmental decision-making.

MLIB Chief Harley Chingee stated: "We're proud to be a part of a project that will be a key contributor to global energy transition goals, and one that will deliver long-term economic benefits to our community for generations to come."

Craig Taylor, the CEO of Defense, said: "We're proud to partner with MLIB and these strategic agreements exemplify a shared vision and commitment to realizing the full potential of the Wicheeda Project and the positive impact it will have on the global Critical Minerals Transition."

Josie Osborne, Minister of Energy, Mines, and Low Carbon Innovation, stated: "The collaboration between Defense Metals and McLeod Lake Indian Band demonstrates how early-stage consultation with First Nations can bring important projects to life in a way that benefits everyone. Partnerships like this play a pivotal role in shaping BC's natural resources future, as we lay a concrete path toward achieving our net-zero goals through collaboration and advancing reconciliation."

Our Takeaway

Long-term positive for Defense Metals (TSXV:DEFN, OTCQB:DFMTF, FRA:35D).

Engaging MLIB at this stage of the project's development will create opportunities for dialogue and collaboration with all stakeholders' interests accounted for.

MLIB's investment in Defense creates a vested financial interest in the project's success. Given the potential scope of the project—it targets 10% of the global light rare earth supply—the long-term payoff could potentially be significant.

Reaching this agreement creates intangible value for Defense. This value comes from continuing de-risking of the project.

This is the most critical takeaway.

Wicheeda has, in our view, become less risky from an investment standpoint after this Co-Design Agreement was signed.

It has confirmed the project's position as a potential prime rare earth source of future REE supply.

This milestone is the latest in a series of successful steps the company has been taking toward bringing Wicheeda to the production stage.

Recent Developments Pave the Way for Success in 2024

Wicheeda has the potential to become a critical asset in the North American rare earth supply chain.

Early in January 2024, the company announced that it had shipped mixed rare earth carbonate samples to Ucore Rare Earths, an innovative REE processing company based in Ontario, Canada. Ucore will test Defense's material at its patent-pending RapidSX commercialization and demonstration facility in Kingston, Ont.

Ucore's CEO Pat Ryan said (emphasis ours): "The MOU lays out the framework wherein Defense Metals' technically strong and readily accessible North American REE resource can be further processed and refined using Ucore's Canadian-founded technology, RapidSX."

This shipment is the first step in what can potentially become a mutually beneficial collaboration between Defense and Ucore.

Critically, Ucore's RapidSX facility was financed in part by the U.S. Department of Defense.

In June 2023, Ucore announced that it received a US$ 4 million award from the U.S. Army Contracting Command-Orlando.

The goal of the award is to demonstrate Ucore’s rare earth element separation technology capabilities. The company says that upon successful completion of the demonstration, it will anticipate receiving production awards from the U.S. Army.

This confirms our thesis.

In our view, Defense Metals (TSXV:DEFN, OTC:DFMTF, FRA:35D) is on track to become a critical player in the North American REE supply chain.

The agreement with MLIB that the company has just announced is another milestone that the company has achieved towards that goal.

[NTD: same as always, add disclaimer, disclosures, and tell them to review filings on www.sedarplus.ca and company’s website]

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Disclosure / Paid Services

The Canadian Mining Report has been retained by Defense Metals Corp. to provide various digital marketing and advertising services. We have been paid to provide editorial and marketing services to profile the company and its project. The preceding Article is PAID FOR CONTENT sponsored by Defense Metals Corp. and produced in cooperation with CanadianMiningReport.com. The publisher of CanadianMiningReport.com owns securities positions in Defense Metals and may trade on their own behalf at any time without prior notice, however, it is our general policy to not sell any shares while we are currently engaged with a client.

The Canadian Mining Report's business model includes receiving financial compensation to carry out various services for companies which may include advertising, marketing and dissemination of publicly available information. This compensation is a major conflict of interest in our ability to be unbiased.

Sources

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