Defense Metals Announces Closing of Second Tranche of Private Placement

Executive Summary

• Defense Metals Corp. closed the second and final tranche of its non‑brokered private placement, raising C$576,000 in gross proceeds (total offering gross proceeds C$16,729,334).
• The units consist of one Class A common share plus half a warrant to purchase an additional share at C$0.45, exercisable until 31 Oct 2028 with accelerated expiry provisions.
• Net proceeds will fund flow‑sheet optimization test work, pilot plant testing, energy and transmission studies, a feasibility study on the Wicheeda project (early 2026), baseline permitting studies, operating expenses and general corporate purposes.

Key Details

• Offering Size: 1,920,000 units sold for an aggregate gross proceeds of C$576,000 (second tranche).
• Total Gross Proceeds (including concurrent brokered placement): C$16,729,334.
• Unit Composition:
• 1 Class A common share per unit
• ½ warrant per unit (full warrant allows purchase of one additional common share at C$0.45).
• Warrant Terms: Exercise price C$0.45 per share; exercisable any time before 31 Oct 2028; accelerated expiry if TSXV closing price ≥ $0.90 for ten consecutive trading days, upon 30‑day notice.
• Exempt Offering: Issued under the “listed issuer financing exemption” (NI 45‑106) – no hold period for Canadian residents except a four‑month TSX Venture Exchange hold expiring 1 Mar 2026.
• Finder’s Fee Paid: $5,250 to an arm’s‑length finder for the non‑brokered placement.
• Use of Proceeds:
• Continue optimization test work on flow sheet from 2025 pre‑feasibility study.
• Complete pilot plant testing supporting optimized flow sheet.
• Conduct energy and transmission studies.
• Commence feasibility study on the Wicheeda project in early 2026.
• Perform baseline studies for future permitting.
• Cover operating expenses and general corporate purposes.
• Debt Settlement Update: Company will not settle C$158,200 of previously announced debt related to units (as disclosed on 28 Jul 2025).

Notable Quotes

“The additional capital strengthens our balance sheet and positions us to advance critical test work and feasibility studies for the Wicheeda project,” – Mark Tory, President & CEO.