DEFENSE METALS PROVIDES BUSINESS UPDATE
Executive Summary
- Defense Metals reports progress toward a Definitive Feasibility Study (DFS) for the Wicheeda REE project in H1 2026 and ongoing optimization of plant design and metallurgy.
- The company secured a Letter of Interest from Export Development Canada to act as Mandated Lead Arranger for up to US$250 million debt financing, and is now debt‑free with positive working capital following recent capital raises.
- Governance updates include election of Maryanne Crichton to the Board, appointment of Crowe MacKay LLP as auditor, and approval of a new 10 % rolling omnibus incentive plan.
Key Details
- Project Development
- DFS targeted for first half of 2026; additional test work underway on plant sizing and metallurgical flow.
- Hatch Ltd engaged to evaluate optimal location for the hydro‑metallurgical plant (currently a brownfield site at Bear Lake, BC).
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Ongoing social and environmental stewardship activities, including baseline environmental studies and Indigenous engagement with the McLeod Lake Indian Band (MLIB).
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Indigenous Relations
- Continued collaboration with MLIB; joint Co‑Design Agreement signed in 2024.
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Defense Metals attended MLIB’s Annual General Assembly; MLIB support highlighted for project location study.
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Government & Regulatory Engagement
- Active dialogue with Canadian and U.S. ministries of Energy and Natural Resources.
- Two grant applications under review with the Critical Minerals Infrastructure Fund (CMIF).
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CEO Mark Tory participated in a trade mission to Berlin with Prime Minister Justin Trudeau and Minister Tim Hodgson; subsequent invitation to a resources roundtable in Canada.
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Strategic Partnerships & Financing
- Memorandum of Understanding signed with a potential strategic partner for a supply agreement covering a significant portion of future output.
- Letter of Interest from Export Development Canada (EDC) to act as Mandated Lead Arranger for up to US$250 million debt financing for project development and construction.
- Ongoing discussions with private/public investors, including the Canadian Growth Fund.
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Company now debt‑free with positive working capital after recent capital raise and debt‑equity swaps.
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Governance & Shareholder Matters
- AGM held on 24 Sept 2025; Maryanne Crichton elected to Board of Directors (background: Senior Principal, Hatch Ltd).
- Crowe MacKay LLP appointed as auditor for the upcoming fiscal year; remuneration for auditor authorized.
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Approval of a new 10 % rolling omnibus incentive plan for employees.
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Financial Highlights from Prior PFS
- Pre‑tax NPV (8 %) of US$1.8 billion and IRR of 24.6 % reported in the May 2025 Preliminary Feasibility Study.
Notable Quotes
“With the clear drive to reduce rare earth value chain dependency on China, the Wicheeda project… is clearly needed. We are determined to make it happen.” – Executive Chairman Guy de Selliers
All boilerplate, forward‑looking statements and disclaimer sections have been omitted for brevity.