DEFENSE METALS ANNOUNCES FIRST TRANCHE CLOSING OF PRIVATE PLACEMENT FOR GROSS PROCEEDS OF C$3.65 MILLION
Defense secures C$3.65M for its Wicheeda REE project amid depressed share prices and ongoing development.
Defense Metals Corp. (DEFN) closed the first tranche of its previously announced private placement on October 16, 2026. The company raised approximately C$3.65 million in gross proceeds by issuing 38,994,395 units at C$0.14 per unit. Each unit includes one-half of a common share purchase warrant, exercisable at C$0.21 per share for 36 months.
Insiders participated in the offering for approximately C$540,011. Net proceeds are allocated to advance the Wicheeda Rare Earth Element Project toward a full feasibility study, fund environmental and social baseline work, and support general working capital. The offering is subject to final TSX Venture Exchange approval. A second and final tranche is expected to close in the coming week to reach the total C$6 million target.
Defense Metals Corp. (DEFN) is closing the first tranche of its financing, an expected follow-up to the announcements made on September 23 and 24. The transaction provides necessary liquidity to continue development but comes at a significant discount to the recent trading range of $0.10 to $0.13, highlighting ongoing capital market challenges for the junior explorer.
Insider participation of approximately C$540k aligns management interests with shareholders during a period of depressed valuations. The use of proceeds directly supports the transition from the Preliminary Feasibility Study (PFS) to a Definitive Feasibility Study (DFS), a critical, pre-planned milestone.
The discount pricing and high volume of new shares, representing nearly 10% dilution, will pressure the share price in the short term. However, the capital extends the runway to de-risk the project. The financing terms reflect the current market sentiment toward junior rare earth element developers.
Defense Metals Corp. (DEFN) is a pre-revenue junior mining company focused on the Wicheeda Rare Earth Element (REE) project in British Columbia, Canada. The project is located approximately 80 km northeast of Prince George and is 100% owned by the company.
Wicheeda is positioned as one of the most advanced undeveloped REE deposits in North America or Europe, holding proven mineral reserves as detailed in a 2025 Preliminary Feasibility Study (PFS). The PFS highlighted strong economics: a pre-tax NPV of ~US$1.8 billion, a pre-tax IRR of ~24.6%, and a 3.7-year payback period.
The company is currently advancing the project through the Definitive Feasibility Study (DFS) stage, supported by ongoing drilling, pilot metallurgical testing, and environmental baseline work. Strategic alignment includes support from the BC Government (Advanced Project Initiative), Federal Government (CMIF grants), and a non-binding MOU with Hanwha Corporation for potential offtake and investment.